U.S. Supreme Court Rules On False Claims Act Dismissals

Highlights

• The U.S. Supreme Court ruled in U.S. ex rel. Polansky that the federal government has the authority to dismiss a False Claims Act (FCA) suit at any stage of litigation, even over a relator's objections, so long as the government first intervenes. The Court also held that the proper standard for dismissal is found in FRCP 41(a), the rule governing voluntary dismissals.
• The Supreme Court's decision suggests that defendants in qui tam cases may wish to continue to press the government to intervene and move to dismiss, even in cases where the government declined to intervene during the seal period.
• Three justices noted that the courts should consider whether the FCA's qui tam provisions violate Article II of the U.S. Constitution, raising the possibility that the Court might address that question in the future.