Cite as: 520 U. S. 939 (1997)
Opinion of the Court
misallocated costs between the two programs, and also concluding that Hughes had not adequately disclosed the company's commonality accounting practices in a Cost Accounting Standards report it had submitted to the Government in 1984. Based on those audits, the Government directed Northrop to withhold $15.4 million in B-2 contract payments from Hughes.1
On January 20, 1989, respondent William J. Schumer, formerly the Division Contracts Manager for Hughes' B-2 Division, commenced this action against Hughes pursuant to 31 U. S. C. § 3730(b), the qui tam provision of the FCA that authorizes private individuals, "relators," to bring claims on behalf of the United States against any person who knowingly presented false or fraudulent claims to the United States in violation of § 3729. Schumer's complaint alleged that Hughes knowingly mischarged Northrop—and through it the United States—for certain radar development costs that should have been allocated to the fixed-price F-15 sub-contract with McDonnell-Douglas instead of to the cost-plus B-2 subcontract with Northrop. App. 72-80. Schumer's amended complaint alleged that Hughes' accounting practices resulted in a $50 million net overcharge, and sought treble damages in the amount of $150 million. Id., at 102.2
Hughes moved to dismiss Schumer's action, contending that the 1986 FCA amendment was not retroactive and that
1 The Government ultimately reversed its preliminary determination, concluding that the commonality agreements had actually benefited the Government by charging costs to the fixed-price F-15 program that otherwise would have been borne solely by the cost-plus B-2 program. Accordingly, the Government withdrew its earlier finding of noncompliance, determined that any noncompliance with accounting disclosure requirements was immaterial, and directed that Hughes be paid the $15.4 million previously withheld on the B-2 project. App. 136-137; App. to Pet. for Cert. 68a.
2 The Government chose not to intervene in the action, as it was entitled to do under 31 U. S. C. § 3730(b)(2), nor did it move to dismiss the action, as it was likewise entitled to do, see § 3730(c)(2)(A).
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