False Claims Act Ruling Offers New Grounds For Defending Whistleblower Claims

In a recent decision from the U.S. District Court for the Middle District of Florida, Judge Kathryn Kimball Mizelle declared the qui tam provision of the False Claims Act (FCA) unconstitutional, raising significant questions about the future of whistleblower litigation. The case, United States ex rel. Zafirov v. Florida Medical Associates LLC, challenges whether private individuals (qui tam relators) can represent the government in FCA claims without violating the Appointments Clause of the U.S. Constitution. The ruling could have broad implications, particularly in higher education, where FCA suits are prevalent.

The case centers on the Appointments Clause, which dictates that officers of the United States must be appointed by the President, the courts, or department heads. The Court found that allowing private whistleblowers to pursue FCA claims on behalf of the government violated this clause, as qui tam relators are not appointed under its terms. It also