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In Schutte Opinion SCOTUS Rejects Defense-Friendly Scienter Standard

Schutte can be taken to suggest that potential FCA defendants may want to proactively seek agency clarification where rules or guidance are unclear. As Schutte acknowledges, a finding of scienter under the FCA only requires that the defendant have reckless disregard for the truth or falsity of their claims.

SCOTUS Rejects Defense-Friendly Scienter Standard In Schutte Opinion | Polsinelli

On June 1, 2023, the Supreme Court of the United States (SCOTUS) issued its much-anticipated opinion in United States ex rel. Schutte v. SuperValu Inc. and United States ex rel. Proctor.

Supreme Court Reviews Scienter Standard in Two FCA Cases

Supreme Court of the United States SCOTUS heard oral arguments in pair of monumental False Claims Act FCA cases to decide whether and when defendant’s subjective understanding of objectively reasonable interpretation of ambiguous law is relevant in proving scienter.

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