On June 16, 2023, the Supreme Court of the United States issued an 8–1 decision in United States ex rel. Polansky v. Executive Health Resources, Inc., pertaining to the government’s authority to dismiss False Claim Act (FCA) cases brought by relators pursuant to the FCA’s qui tam provisions. In affirming the Third Circuit, the Supreme Court handed a victory to the government, in whose name FCA cases are brought, holding the government’s view as to whether an FCA case should be dismissed is “entitled to substantial deference” even if the government declined to intervene in the case before ordered to make an intervention decision. This is good news for FCA defendants, as defendants occasionally appeal to the government for dismissal when a relator pursues a meritless case against the defendant or otherwise pursues an FCA action the government has reason to oppose.
Meanwhile, in a dissenting opinion and concurrence, three justices raised questions about the constitutionality of the FCA’s qui tam provisions, signaling the Supreme Court may review that question in a later case.
8–1 Majority Opinion: Government Dismissal Authority “Not a Close Call”
The first question the Court tackled was whether the government could move to dismiss an FCA action after initially declining to intervene in the case at the outset of litigation and leaving the relator to litigate the case on behalf of the government. Polansky had argued the government should not have been able to move to dismiss...
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