On June 16, 2023, the Supreme Court ruled in United States ex rel. Polansky v. Executive Health Resources, Inc., that (i) under the False Claims Act, the government may move to dismiss a False Claims Act (“FCA”) action pursuant to 31 U.S.C. § 3730(c)(2)(A) and (ii) in assessing the government’s motion to dismiss an FCA action over a relator’s objection under Federal Rule of Civil Procedure 41, the government should be afforded substantial deference. This decision is a strong endorsement of the government’s right to dismiss cases brought by relators under the FCA that are frivolous, inconsistent with government policy, or wasteful of the time of government employees, even when the relator objects. As discussed below, defendants should leverage Polansky to press the government to seek the dismissal of FCA cases that fall into these categories.
The Role of the Government In False Claims Act Litigation
Under the False Claims Act, any person who presents false or fraudulent claims for payment to the federal government is subject to civil liability. See 31 U. S. C. §§3729–3733. The statute further authorizes private parties, known as relators, to sue on the government’s behalf in qui tam actions. §3730(b)(1).
Pursuant to this statute, relators must file their complaint under seal and serve a copy and supporting evidence on the government. See §3730(b)(2). The government then has 60 days (often extended for “good cause”) to decide whether to “intervene and proceed with the...
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