Scollick Spotlights Need for Sureties to Understand False Claims Act Risks


On August 16, 2019, discovery is set to close in United States ex rel Scollick v. Narula (D.D.C.), a case that highlights the potential False Claims Act (FCA) risks that sureties can face when bonding construction contractors that are alleged to have fraudulently claimed eligibility for set-aside awards through the federal small business contracting programs. In an article published in both Mealey’s Litigation Report and Emerging Insurance Disputes, C&M attorneys discuss how sureties can defend themselves against FCA investigations and how to adjust their underwriting operations to mitigate against FCA risks.