New Provisions of California’s False Claims Act

California Governor Jerry Brown recently signed into law AB 2492, amending California’s False Claims Act to better conform it to requirements of the federal False Claims Act.1 In addition to amending definitions of “conduct” that would fall under the provisions of the new law, civil penalties are also increased for each violation. The new changes also make it easier for employees who themselves violate the Act to file suit against an employer based on the employee’s prohibited conduct and be awarded a share of the proceeds of the action. Courts can, however, reduce the award based on the employee’s conduct.