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Highlights

A district court judge overturned the False Claims Act’s whistleblower provision, holding it incompatible with the Constitution’s Appointments Clause

This is the first holding of its kind and will certainly be appealed

Until the appellate process is completed, it is likely that raising similar arguments, citing to this opinion, will be standard practice for FCA practitioners

The U.S. District Court for the Middle District of Florida dismissed a False Claims Act (FCA) case, holding on Sept. 30 that the qui tam, or whistleblower provision of the FCA, is unconstitutional. It is the first decision of its kind involving the FCA.

The FCA allows the U.S. government to investigate and prosecute individuals and entities who submit false or fraudulent claims for payment to the government. The FCA is unique among federal anti-fraud laws in that it also allows private whistleblowers (called relators under the act) to file FCA cases pursuant to a qui tam provision.

Once a case is brought by a relator the United States has a certain amount of time to investigate the case and decide how to proceed: either intervene and take over the case or decline to intervene. If, after investigation, the government chooses not to proceed with the prosecution, the qui tam provision allows the relator to continue to prosecute the case they brought in the name of the government, subject to some limitations.

Overturning the FCA’s Qui Tam Provisions

In the Florida...

Read Full Story: https://news.google.com/rss/articles/CBMiywFBVV95cUxQUmNvN3hqcUprN2hRbXA1alJJ...