Wisconsin Bell, Inc. v. United States, ex rel. Todd Heath
Issues
Does the False Claims Act cover reimbursement requests made to a program regulated by the Federal Communications Commission but largely funded by private service providers?
This case asks the Court to determine whether reimbursement requests made by schools and public libraries to the Federal Communications Commission’s E-Rate program can constitute false “claims” under the False Claims Act (FCA). Wisconsin Bell contends that the FCA does not cover reimbursement requests to the E-Rate program because the money for the E-Rate program’s funds comes solely from private companies, and the Universal Service Administrative Company (USAC) is not an agent of the federal government. The federal government argues that the FCA does cover reimbursement requests to the E-Rate program because the funds are made available by the federal government, and the federal government can control the USAC. This case touches on important questions regarding the FCA’s scope and the FCA’s impact on businesses working with the federal government.
Questions as Framed for the Court by the Parties
Whether reimbursement requests submitted to the Federal Communications Commission's E-rate program are “claims” under the False Claims Act.
A company violates the False Claims Act (FCA) if it “knowingly presents, or causes to be presented, a false or fraudulent claim for payment or approval” that is material to the government’s decision to use federal funds. 31 U.S.C.
Additional Resources
- E-Rate - Schools & Libraries USF Program, Federal Communications Commission (October 10, 2024).
- Davis Wright Tremaine LLP and Fernanda Hilb, FCC Extends E-Rate to Off-Premises Wi-Fi Hotspots, (August 7, 2024).