Press Releases

For Immediate Release
January 13, 2020

For more information, contact
Tricia Harris, tharris@pachamber.org | 717.720.5447

PA Chamber: False Claims Act Will Incentivize Lawsuits; Negatively Impact State’s Legal Climate

HARRISBURG - Pennsylvania Chamber of Business and Industry President and CEO Gene Barr issued the following statement regarding calls from some elected officials to enact a False Claims Act in the Commonwealth: 

 

“The PA Chamber fully supports eliminating waste, fraud and abuse of state tax dollars; however doing so through a False Claims Act would create an unbalanced litigation environment. False Claims incentivizes private individuals and plaintiffs lawyers to file lawsuits on behalf of the Commonwealth for alleged Medicaid fraud by increasing the percentage of the recovery.  This leads to the plaintiffs’ lawyers recovery increasing, while the Commonwealth’s portion of the recovery decreases.

 

“Pennsylvania’s legal climate already creates a challenging environment for job creators – in fact, the Philadelphia Court of Common Pleas was just ranked the number one judicial hellhole in the country.  Enacting a FCA will exacerbate this situation by further bogging down the state’s already cumbersome and overly-crowded court system – which in turn will negatively impact the state’s overall business climate and economy.  We urge lawmakers to oppose the creation of a False Claims Act and instead focus on proposals that will bring stability and fairness to Pennsylvania’s civil justice system.”  

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The Pennsylvania Chamber of Business and Industry is the state's largest broad-based business association, with its statewide membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of BusinessTM.