The United States District Court for the Eastern District of Virginia recently issued a decision that may have broad implications to the calculation and imposition of civil penalties in False Claim Act (FCA) cases, because, for the first time, a court refused to issue mandatory civil penalties against a contractor that was found to have violated the FCA.
More specifically, United States ex rel. Bunk v. Birkart Globalistics GmbH & Co., et. al., No. 1:02-CV-1168 (E.D. Va. February 14, 2012), involves a qui tam claim that was filed against a contractor for violations of the FCA. The alleged violations stem from a bid submitted to the Department of Defense, which included a Certificate of Independent Pricing that stated: