On 16 June 2023, the United States Supreme Court issued a decision in the case of United States ex rel. Polansky v. Executive Health Resources1, holding that the federal government (Government) maintains the authority to dismiss a federal False Claims Act (FCA) action over a relator's objection so long as the Government first intervenes in the action. The court also held that in assessing the Government's motion to dismiss a relator's FCA action, district courts should apply the rule governing voluntary dismissal of suits in ordinary civil litigation. This decision, in giving the Government broad discretion to dismiss a qui tam action, may affect the Government's decision on when to intervene in an action. Additionally, the decision reinforces FCA defendants' ability to urge the Government for dismissal throughout the lifecycle of the qui tam action, rather than solely at the pre-intervention phase.
The FCA allows private citizens—relators—to file FCA suits on behalf of the Government, which are known as qui tam suits. In a qui tam suit, the FCA allows the Government a 60-day period (subject to extensions) to investigate and evaluate the action, during which the relator's complaint remains under seal.2 The Government then has the choice to intervene and effectively take over the action or to decline to intervene and allow the relator to continue conducting the action on the Government's behalf.3 Even where the Government declines to intervene, the FCA makes...
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