In Recent "Original Source" Decision, Relator's Pre-2010 "Secondhand" Claims Back-Handed By Third Circuit

A recent Third Circuit decision reaffirmed the high bar a relator must meet to qualify as an "original source" under the pre-2010 version of the False Claims Act's (FCA) public disclosure bar. Before the 2010 amendments to the FCA, the statute defined "original source" to require that relators have "direct" (i.e., firsthand) and independent knowledge of the information underpinning their claims. In 2010, Congress expanded the original source exception to include instances where the relator "materially adds to the publicly disclosed allegations," even if the relator did not directly obtain the information at issue. Importantly, the 2010 amendment does not apply retroactively, meaning that, in cases involving pre-2010 conduct, relators still must meet the "firsthand knowledge" standard to qualify as an original source.