Over the last year, a few important questions related to False Claims Act (FCA) cases have garnered significant attention. Two of those questions ultimately made their way to the Supreme Court. In one case, which has already been argued, the Court addresses whether the government has authority to dismiss an FCA case brought by a private citizen on the government’s behalf (a qui tam action) after originally declining to intervene and, if so, the applicable standard of judicial review. More recently, the Court has agreed to hear two cases that address whether a defendant’s “objectively reasonable” interpretation of ambiguous statutory language presents a cognizable defense to “knowledge” under the FCA. We cover both of these issues in more detail below.

Supreme Court Hears Argument on the Government’s Dismissal Authority Under Section 3730(c)(2)(A)

The FCA empowers the government to “dismiss [a qui tam] action notwithstanding the objections of the person initiating the action if the person has been notified by the government of the filing of the motion and the court has provided the person with an opportunity for a hearing on the motion.” In early December, the Supreme Court heard oral argument in U.S. ex rel. Jesse Polansky v. Executive Health Resources, Inc., which presents the question of “whether the government has authority to dismiss an FCA suit [under section 3730(c)(2)(A)] after initially declining to proceed with the action, and what standard applies if the...

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