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Pharma Could Face Fewer False Claims Act Suits If Supreme Court Concurs With Government

Executive Summary

High court is to determine whether the government can dismiss an FCA complaint after initially declining to take it on. In recent years, the government has dismissed numerous qui tam suits against pharma companies in which it did not intervene.

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Supreme Court Gives Government Leeway To Dismiss False Claims Act Suits

Government can file a motion to dismiss an FCA case whenever it intervenes, whether it does so during the seal period or later, court says. District courts should assess motion to dismiss using rules in civil litigation.

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Justices cite changing circumstances, constitutional concerns in preventing government from seeking dismissal of a case in which it initially declined to intervene. They also question whether government should intervene before moving to dismiss.

Will US Government Pursue Fewer False Claims Act Cases In 2019?

Fallout from Supreme Court's Escobar decision and Department of Justice memos could impact types of healthcare fraud complaints in which the government intervenes.

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