How Cos. Can Take Advantage Of DOJ False Claims Act Memo

A rarely used procedure allowing the government to dismiss a False Claims Act suit over the objections of a qui tam relator is the subject of a recent U.S. Department of Justice memorandum made public on Jan. 24.

Under the FCA, an individual with unique, firsthand knowledge of alleged fraud may file suit under seal on behalf of the government. The individual — the qui tam relator — must provide the government with the complaint and supporting evidence, allowing the government to decide whether to intervene and take over the action, or decline intervention, in which case the relator proceeds “in the shoes of the Attorney General.” FCA litigation has exploded in recent years, targeting health care companies, defense contractors, and others with an estimated 600 new matters filed every year. Many of these linger in the federal court system for extended periods of time, forcing defendant companies to expend substantial resources to respond to allegations that may be opaque, unfounded or ill-informed.

To continue reading Harry Sandick and Aileen Fair's article from Law360, please click here.

To read the U.S. Department of Justice memorandum, please click here.