Judges cannot dismiss federal False Claims Act actions based on the law’s first-to-file rule on jurisdictional grounds, the full U.S. Court of Appeals for the Ninth Circuit ruled Tuesday in overturning its own precedent.
The en banc decision means defendants now bear the burden of persuading courts to toss FCA actions under the first-to-file bar, rather than be entitled to dismissal if a claim has already been filed, said William Hanagami, an attorney for two individuals who filed a qui tam action alleging Medicare fraud by health care company Kaiser.
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