Sedgwick attorneys Matthew Ferguson (NY) and Kimberly Forrester (SF) have published an article on the Federal False Claims Act (FCA) and its implications for D&O and professional liability insurers. The full article can be viewed here.
Among the issues discussed are the background and elements of the FCA and certain recent developments, including the increase in the number of cases filed by the U.S. Department Justice and substantial settlements against companies in a variety of different industries.
The article also references a number of recent insurance cases and coverage issues involving the FCA. These include potential limitations to the definition of “Loss” based on the damages available in FCA matters and cases addressing certain exclusions which have been considered in FCA claims, including regulatory, prior and pending and professional services exclusions.