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Tuesday, January 27, 2026

Fraud – False Claims Act – Sovereign immunity - Massachusetts Lawyers Weekly

Where a False Claims Act complaint alleging retaliation at Veterans Affairs Maine Healthcare System was dismissed, the judgment of dismissal should be affirmed because Congress has not expressly waived the federal government’s sovereign immunity to permit FCA-based retaliation claims against federal employers.

“Plaintiff-Appellant Erik K. Sargent appeals from the district court’s dismissal of his retaliation claim under the False Claims Act (‘FCA’), 31 U.S.C. §3730(h), for lack of subject-matter jurisdiction. Mr. Sargent, a federal employee, sued the Secretary of the Department of Veterans Affairs (the ‘Secretary’) in his official capacity. Mr. Sargent alleged that he had suffered on-the-job retaliation at Veterans Affairs Maine Healthcare System after refusing to cooperate with fraudulent acts by his supervisors and reporting those acts. The district court determined, sua sponte, that Congress had not expressly waived federal sovereign immunity for retaliation claims under Section 3730(h), and so ‘the FCA d[id] not authorize [Mr. Sargent] to pursue his FCA-derived retaliation claim against the United States.’ … The court thus granted the motion to dismiss. … Upon review, we affirm the district court’s judgment and hold that federal sovereign immunity bars Mr. Sargent’s retaliation claim under 31 U.S.C. §3730(h). …

“As a preliminary matter, we note the district court acted appropriately in assessing sovereign immunity sua sponte. …

“… The government’s sovereign immunity...



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