Outcome:
The case has been remanded to the District Court.
Gose v. Native American Services Corporation, Great American Insurance Group, Inc., d.b.a. Great American Insurance Company, No. 23-10600 in the United States Court of Appeals for the Eleventh Circuit
The United States Court of Appeals for the Eleventh Circuit has ruled in favor of whistleblowers Dennie Gose and Brent Berry, reversing a lower court’s dismissal of a False Claims Act (FCA) case involving the Small Business Administration’s (SBA) 8(a) Program. The plaintiffs allege that Great American Insurance Company (GAIC) and Native American Services Corporation (NASCO) improperly took control of DWG & Associates, Inc., a former participant in the 8(a) Program, without notifying the SBA or seeking the required waivers. The Eleventh Circuit’s ruling clarifies that businesses that have graduated from the 8(a) Program but continue to bid on and perform 8(a) contracts remain subject to the Program’s ownership and control requirements. Additionally, the court reaffirmed that falsely inducing the government to award a contract or task order makes all subsequent claims for payment under that award actionable under the FCA.
The implications of this ruling are significant for companies involved in the SBA’s 8(a) Program and for the enforcement of small business contracting regulations. The decision supports the ability of the government and whistleblowers to hold companies accountable for compliance with these regulations. The case, now remanded to the District Court, will proceed after being halted pending the Eleventh Circuit’s ruling.