In an 8-1 decision released today, the U.S. Supreme Court held the federal government has the authority to dismiss a whistleblower False Claims Act case even if it initially declines to intervene in the suit. This is likely a difficult pill to swallow for qui tam relators who have gone out on a limb to report allegations of fraud. While the Court held that the government’s discretion is not completely unfettered—the government must offer a reasonable argument why the burden of continued litigation outweighs its benefits—the Court’s ruling may have a chilling effect on qui tam actions given that the government’s broad dismissal authority will be upheld even when a relator presents a credible assessment to the contrary. Read the Court’s decision here.
| less than a minute read
Relators Beware: DOJ has Broad Dismissal Authority in False Claims Act Cases
"Today, we hold that the Government may seek dismissal of an FCA action over a relator's objection so long as it intervened sometime in the litigation, whether at the outset or afterward."
On May 17, Colorado’s governor signed the groundbreaking Consumer Protections for Artificial Intelligence Act. The Act regulates...