PCCJR Executive Director Curt Schroder was featured on a recent episode of Pennsylvania Cable Network’s (PCN) “Capitol Preview” program to discuss a proposed state False Claims Act and the negative impact it will have on the Commonwealth’s business, health care, and legal climates.
“It’s (a proposed state False Claims Act) particularly damaging to small businesses and small health care providers,” Schroder said. “With the immense penalties that are assessed on a per claim basis…you could be assessed up to $28,000 per claim…small businesses and small clinics and small doctors’ office practices could be wiped out with this type of penalty. It promotes what we call a sue and settle culture.”
Defendants who are victims of False Claims litigation often settle, regardless of the merit of the case, as they do not want to risk financial ruin. This is not justice! It is coercion benefiting profiteering lawyers who are not motivated by the fair administration of policy and rules. The general assembly must not outsource collecting mis-spent state dollars to profiteers. This role belongs to the Attorney General. If the Attorney General needs more tools to enforce compliance, the legislature should provide those tools so that enforcement remains a state function.
Schroder’s interview can be viewed in its entirety here.