Why might a citizen not want to file suit under the False Claims Act against a company that has committed major fraud against the federal government and is now in bankruptcy?
A) When in bankruptcy, company executives are free from prosecution for financial issues.
B) The company's failure in the marketplace is already under a law suit.
C) There is little point in filing suit if the company is unlikely to be able to pay back any of the money.
D) The False Claims Act specifically protects companies in bankruptcy from prosecution.

Question

Quizplus · Accepted Answer

There is little point in filing suit if the company is unlikely to be able to pay back any of the money. This is because the primary goal of such a lawsuit would be to recover funds for the government, and if the company is bankrupt, it may not have the assets to pay any fines or settlements.

Why Might a Citizen Not Want to File Suit Under