What Is the Statute of Limitations for Bringing an Action Under the False Claims Act?

The statute of limitations for bringing an action under the False Claims Act (FCA) is a critical factor in determining the timeframe within which claims of fraud against the government can be pursued. The FCA provides a dual statute of limitations framework, which sets specific deadlines based on the circumstances of the case.

Statutory Framework Under the FCA

The FCA’s statute of limitations is governed by 31 U.S.C. § 3731(b), which outlines two distinct timeframes:

• Six-Year Rule:

1. 1. • Claims must be filed within six years of the date the alleged fraudulent act occurred.
      • This rule provides a definitive starting point for the statute of limitations based on the occurrence of the fraud.
        
        

• Three-Year Discovery Rule:

1. • Claims can also be filed within three years from the date when the material facts of the fraud were known, or reasonably should have been known, by the appropriate government official.
     
     
   • This provision accounts for cases where fraud is discovered well after it was committed.
     
     
   • The discovery rule is capped at ten years from the date of the violation, meaning no claim can be filed more than ten years after the fraud occurred, regardless of when it was discovered.

Supreme Court Clarification in Cochise Consultancy, Inc. v. United States ex rel. Hunt

The application of the three-year discovery rule was clarified in the 2019 Supreme Court case, Cochise Consultancy, Inc. v. United States ex rel. Hunt. The Court resolved ambiguity about whether the discovery rule applies when the government does not intervene in a whistleblower’s qui tam lawsuit.

• Key Ruling:
  The three-year discovery rule applies even when the government declines to intervene in a qui tam action. This means the clock for the three-year discovery rule starts based on when the government—not the whistleblower—became aware of the fraud.
  
  
• Impact on Timeframe:
  The ruling allows for potential extensions of the filing period in cases where the government learns about the fraud later, effectively giving whistleblowers up to ten years to file under certain conditions.

How do the statute of limitations vary by state, and what impact does this have?

Many states have their own False Claims Acts, each with specific provisions and statutes of limitations. Below is a simplified list of U.S. states and their respective False Claims Act (FCA) statute of limitations. For states without a specific FCA, the federal FCA may still apply for cases involving federal funds. Always consult state-specific legal resources for accurate and up-to-date information.

1. Alabama: No specific False Claims Act.
2. Alaska: No specific False Claims Act.
3. Arizona: 3 years from knowledge or 6 years from the violation.
4. Arkansas: No specific False Claims Act.
5. California: 3 years from knowledge or 10 years from the violation.
6. Colorado: 3 years from knowledge or 10 years from the violation.
7. Connecticut: 3 years from knowledge or 6 years from the violation.
8. Delaware: 3 years from knowledge or 10 years from the violation.
9. Florida: 3 years from knowledge or 10 years from the violation.
10. Georgia: 3 years from knowledge or 10 years from the violation.
11. Hawaii: 6 years from the violation.
12. Idaho: No specific False Claims Act.
13. Illinois: 5 years from knowledge or 10 years from the violation.
14. Indiana: 6 years from the violation.
15. Iowa: No specific False Claims Act.
16. Kansas: No specific False Claims Act.
17. Kentucky: 3 years from knowledge or 10 years from the violation.
18. Louisiana: 3 years from knowledge or 6 years from the violation.
19. Maine: No specific False Claims Act.
20. Maryland: 3 years from knowledge or 10 years from the violation.
21. Massachusetts: 6 years from the violation.
22. Michigan: No specific False Claims Act.
23. Minnesota: 6 years from the violation.
24. Mississippi: No specific False Claims Act.
25. Missouri: 6 years from the violation.
26. Montana: No specific False Claims Act.
27. Nebraska: No specific False Claims Act.
28. Nevada: 3 years from knowledge or 6 years from the violation.
29. New Hampshire: No specific False Claims Act.
30. New Jersey: 6 years from the violation.
31. New Mexico: 3 years from knowledge or 6 years from the violation.
32. New York: 6 years from the violation.
33. North Carolina: 3 years from knowledge or 6 years from the violation.
34. North Dakota: No specific False Claims Act.
35. Ohio: No specific False Claims Act.
36. Oklahoma: No specific False Claims Act.
37. Oregon: 3 years from knowledge or 6 years from the violation.
38. Pennsylvania: No specific False Claims Act.
39. Rhode Island: No specific False Claims Act.
40. South Carolina: 3 years from knowledge or 6 years from the violation.
41. South Dakota: No specific False Claims Act.
42. Tennessee: 6 years from the violation or 3 years from knowledge, capped at 10 years.
43. Texas: 6 years from the violation or 3 years from knowledge, capped at 10 years.
44. Utah: 6 years from the violation or 3 years from knowledge, capped at 10 years.
45. Vermont: No specific False Claims Act.
46. Virginia: 6 years from the violation or 3 years from knowledge, capped at 10 years.
47. Washington: 6 years from the violation or 3 years from knowledge, capped at 10 years.
48. West Virginia: No specific False Claims Act.
49. Wisconsin: No specific False Claims Act.
50. Wyoming: No specific False Claims Act.

The statute of limitations under the False Claims Act (FCA) is a critical factor in prosecuting fraud against the U.S. government. It establishes the timeframe within which legal actions must be initiated, ensuring timely and fair proceedings. However, the application of these time limits can vary significantly across different states, impacting both whistleblowers and defendants.

Conclusion

The statute of limitations under the False Claims Act varies by state, impacting the timing and strategy of filing and defending against claims. Both whistleblowers and defendants must be cognizant of these differences to navigate the legal landscape effectively. Consulting with legal professionals knowledgeable in both federal and state FCA provisions is advisable to ensure compliance and to optimize the outcomes of potential claims or defenses.