HealthNow New York Inc. should continue to face a False Claims Act suit alleging health-care program fraud because the law’s whistleblower provisions are lawful under the US Constitution, federal prosecutors told a district court.
HealthNow contends that the whistleblower provisions violate the appointments clause in Article II, which specifies the means of appointing US officers. But this argument must fail because FCA whistleblowers don’t “occupy a continuing position,” which is required to be an officer, the government told the US District Court for the Western District of New York in a brief opposing HealthNow’s motion for judgment on the pleadings. ...
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