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Friday, January 10, 2025

Federal judge dismisses qui tam case based on constitutional concerns: Is the False Claims Act era coming to a close? - Norton Rose Fulbright

In a stunning, but not unexpected, case for all who follow the False Claims Act (FCA), a federal judge in the Middle District of Florida ruled that the qui tam component of the FCA is unconstitutional. The case gives further vitality to the dissenting opinion of Justice Clarence Thomas in U.S. ex rel. Polansky v. Executive Health Resources, Inc., 599 U.S. 419, 449 (2023), which questioned the constitutionality of allowing a qui tam plaintiff’s case to proceed when the government does not intervene in the case. See U.S. ex rel. Zafirov v. Florida Medical Associates, LLC, et al., No. 8:19-CV-01236-KKM-SPF, 2024 WL 4349242 (M.D. Fla. Sept. 30, 2024) (Mizelle, J.).

In Zafirov, the District Court held that because a qui tam relator, who under the FCA can pursue actions on behalf of the government and share up to 30 percent of the recovery, is not appointed by the President and has no executive power, the relator cannot pursue a case in the name of the government. Zafirov, 2024 WL 4349242, at *2. The Court noted that a relator, who has not received a commission or sworn an oath of loyalty to the federal government, has no direct accountability to anyone in the Executive Branch, and “enjoys unfettered discretion to decide whom to investigate, whom to charge in the complaint, which claims to pursue, and which legal theories to employ.” Zafirov, 2024 WL 4349242, at *5. Furthermore, the Court noted that a relator determines whether to appeal, “thereby shaping the broader legal...



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