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ARTICLE · 19 SEPTEMBER 2014

Once The Whistle Has Sounded: Courts Should Aggressively Enforce The False Claims Act's First-To-File Bar

Jones Day
Jones Day
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The False Claims Act's first-to-file bar encourages a race to the courthouse to reward a qui tam relator who promptly discloses fraud against the government.

United StatesLitigation, Mediation & Arbitration

The False Claims Act's ("FCA") first-to-file bar—31 U.S.C. 3730(b)(5)—encourages a race to the courthouse to reward a qui tam relator who promptly discloses fraud against the government. The rule creates an incentive for relators to promptly alert the government to the essential facts of a fraudulent scheme, by allowing only the first to report the scheme to share in any reward recovered. The rule establishes a jurisdictional bar by discouraging additional lawsuits based on the same facts because the follow-on suits do not enhance the government's ability to investigate and prosecute fraud. Further, allowing multiple suits would drain the government's already limited resources without creating potential for additional recovery.

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