Whistlebowers’ False Claims Act suit against Native American Services Corp. and Great American Insurance Group Inc. alleging small business contract fraud is unconstitutional, a federal judge said for a second time.

The FCA’s whistleblower provisions violate the appointments clause, Judge Kathryn Kimball Mizelle of the US District Court for the Middle District of Florida said in a Thursday order granting the defendants’ motion for judgment on the pleadings and dismissing the nine-year suit with prejudice.

A whistleblower “undeniably asserts core executive power by prosecuting claims on behalf of the United States,” the court said. Whistleblowers are US officers, and they ...

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