by Kayla Conti
Kayla Conti (Photo courtesy of Kohn, Kohn & Colapinto LLP)
On June 1, 2023, the Supreme Court issued a unanimous decision[1] in the consolidated case of U.S. ex rel. Schutte v. SuperValu, Inc. (“SuperValu”)[2] and U.S. ex rel. Thomas Proctor v. Safeway, Inc. (“Safeway”),[3] holding that subjective intent is relevant for determining whether a defendant acted “knowingly” under the False Claims Act. The Supreme Court reversed the Seventh Circuit’s decisions in favor of Petitioners, which effectively preserves the False Claims Act as a major tool for both prosecuting and deterring fraud. While whistleblowers, taxpayers, and anti-fraud advocates have ample reason to rejoice, the decision left more to be desired by the Department of Justice and many entities who submit claims for payment to federal programs.