The US Supreme Court ruled Friday that the Department of Justice (DOJ) can retain its power to dismiss third-party federal whistleblower actions filed on behalf of the government under the False Claims Act (FCA). The FCA allows whistleblowers to sue on behalf of the government to recover taxpayer funds paid under false pretenses, with the whistleblowers able to receive a portion of the damages.
Justice Elena Kagan, writing for the majority, pointed out the unique nature of the statute, saying:
The statute is unusual in authorizing private parties—known as relators—to sue on the Government’s behalf. When a relator files a complaint, the Government gets an initial opportunity to intervene in the case. If the Government does so, it takes the lead role. If not, that responsibility falls to the relator, the only person then pressing the suit. But even when that is so, the Government retains certain rights, including the right to intervene later upon a showing of good cause.
Justice Kagan asserts that, despite the unique relationship between the relator and the government, “the suit alleges injury to the Government alone. And the Government, once it has intervened, assumes primary responsibility for the action.”
Therefore, Justice Kagan clarifies, the government can seek dismissal of an FCA claim as long it has intervened during the litigation. The opinion goes on to direct district courts to handle such dismissals under Federal Rule of Civil Procedure 41(a), which governs...
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