Aug 17 (Reuters) - In June, three justices of the U.S. Supreme Court more or less invited False Claims Act defendants to mount a constitutional challenge to whistleblower suits alleging fraud on behalf of the U.S. government.
Hogan Lovells and Linklaters accepted that invitation this week.
The defense firms filed a brief on Tuesday that asks U.S. District Judge Scott Coogler of Birmingham, Alabama, to grant judgment for orthopedic implant maker Exactech in a False Claims Act case alleging that the company is liable for false federal health insurance claims based on purportedly defective knee implants.
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The company already failed to dispose of the suit on summary judgment. But the new brief contends that the case is unconstitutional under two provisions of Article II of the U.S. Constitution, which delineates the powers of the U.S. president.
This gets a little complicated, so stick with me. The False Claims Act, which dates back to the Civil War, allows private whistleblowers to initiate lawsuits alleging that defendants defrauded the federal government. Those suits are filed under seal to give the U.S. Justice Department time to investigate the allegations. The DOJ can either decide to intervene in the litigation – in which case federal prosecutors typically take the lead – or can decline to intervene.
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If the Justice Department declines...
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