The US Supreme Court on Tuesday will hear a whistleblower argue that his False Claims Act suit should be revived because the Justice Department—which sought and won dismissal—didn’t intervene in the case in time.
Jesse Polansky, who sued Executive Health Resources Inc. alleging Medicare fraud, says the government lost the right to seek dismissal of his case when it initially declined to get involved.
If the Supreme Court agrees with Polansky that the DOJ can miss its chance to seek dismissal, that will have significant implications for the government, said Debra Schreck, who represents FCA defendants with Arnold & Porter Kaye Scholer LLP in New York.
“For example, the government may spend much more time and resources early on investigating relators’ claims before it loses the ability to rein in unmeritorious cases— brought on its behalf—that could undermine important government interests and drain resources,” she said.
If the Supreme Court sides with Polansky it “would undercut the government’s ability to manage FCA litigation, and could raise constitutional concerns,” said Shamis Beckley, who represents FCA defendants with Cooley LLP in Boston.
But there’s a lot at stake for whistleblowers too, said Stephen Hasegawa, who represents FCA plaintiffs with Phillips & Cohen LLP in San Francisco.
“The government says that they can dismiss your case at...
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