In Polansky v. Executive Health Resources, Inc., et al., No. 19-3810 (3d Cir. Oct. 28, 2021), the United States Court of Appeals for the Third Circuit recently weighed in on procedural issues fueling circuit splits relative to both the Government's statutory authority to intervene in False Claims Act (FCA), 31 U.S.C. § 3729-3733 qui tam lawsuits and the standard governing Government intervention. More particularly, the Third Circuit addressed the circumstances under which the Government can voluntarily dismiss a FCA lawsuit over the relator's objection. The Third Circuit held that the Government must intervene pursuant to § 3730(c)(3) before it can seek to dismiss a qui tam lawsuit under § 3730(c)(2)(A), and the Government's motion to dismiss is governed by the provisions set forth in Federal Rule of Civil Procedure 41(a).
The FCA provides the United States Government with statutory ammunition to combat fraud on the United States across many industries. Specifically, the FCA permits the Government to levy fines and treble damages against a person for knowingly submitting false claims for payment to the Government. The FCA also creates a private enforcement provision that authorizes individuals, referred to as relators, to file lawsuits against any individual or organization who knowingly submits false claims to the Government. These lawsuits are known as qui tam lawsuits and, if successful, allow the relator to retain up to 30% of the recovery. In the context of...
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