Most people picture high stakes civil litigation taking place in a courtroom where a party has the chance to persuade a judge or jury to validate or reject huge claims for damages.
But envision a different picture, one that takes place in a United States attorney’s office, where only an investigator is running the show, along with a prosecutor, a court reporter and a company’s ex-employee who was “in the know.”
Law enforcement is questioning this former worker under oath, on the record, about claims against a company in a sealed complaint. And this testimony could lead to treble damages. The company doesn’t know about this meeting or even that there is a complaint against it.
Welcome to the new front in high stakes False Claims Act litigation: civil investigative demands, or CIDs.
While the second scenario is not necessarily common place — usually companies eventually learn about an investigation or a whistleblower lawsuit — it can, and does, happen. Use of CIDs in False Claims Act investigations is increasing and defense contractors need to recognize the risks and implement best practices in the event a CID is served on one of its employees.
Keep reading this article at: http://www.nationaldefensemagazine.org/archive/2014/April/Pages/CivilLitigationCanSinkContractors.aspx