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Relators Beware: DOJ has Broad Dismissal Authority in False Claims Act Cases

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.

"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."

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litigation, government relations