In Short
The Situation: The federal False Claims Act ("FCA") allows the United States to dismiss the action if the qui tam relator "has been notified by the Government of the filing of the motion and the court has provided the person with an opportunity for a hearing on the motion." Because FCA claims are brought in the name of the United States, the government seeks to retain discretion to intervene and dismiss the action at the outset of an FCA suit or at any time afterwards.
The Result: In U.S. ex rel. Polansky v. Executive Health Resources, Inc., the Supreme Court heard an argument regarding whether § 3730(c)(2)(A) requires the hearing to occur before a trial court, and what standard applies to the request for dismissal of a relator's FCA suit.
Looking Ahead: The Supreme Court addressed for the first time an issue dividing the circuit courts and will likely establish a uniform standard across the circuits for dismissal by the United States of a relator's FCA suit. Defendants will need to pay close attention to this standard in assessing whether, and how, to push the government to dismiss cases over relators' objections. They should also monitor Schutte, where the Supreme Court may address a key FCA defense: scienter.
While FCA defendants typically find themselves first opposite the government in the investigative phase, and then opposite the relator during the litigation phase of such matters, the Supreme Court recently heard a case pitting the government and relator...
Over the last year, beyond traditional healthcare and federal procurement matters, the government has pursued federal False Claims Act (FCA) investigations and enforcement across high-risk areas, i...