Federal Courts Split on Government Dismissals of Qui Tam Claims
In 2018, the Justice Department (DOJ) ordered US Attorneys to aggressively seek dismissal of False Claims Act (FCA) whistleblower qui tam lawsuits that lack merit or don’t serve the government’s interests. However, actual attempts to implement the controversial policy have proven tougher than expected with the courts split over how much discretion the government has to toss qui tam cases it doesn’t like. The Granston Memo Under the FCA, lawsuits by whistleblowers (aka, “relators”) must be filed under seal to give the DOJ time to decide whether to intervene in the case. Although the case doesn’t end if the DOJ declines, the decision reduces the relator’s leverage significantly. The FCA also includes what had been a rarely used provision, Section 3170(c)(2)(A), allowing the government to actively seek to have cases that it doesn’t believe serve its interests dismissed. In January 2018, then DOJ Civil Fraud Section Director Michael Granston issued an internal memorandum instructing US Attorneys to exercise their Section 3170(c)(2)(A) powers more aggressively. The Granston memo calls on federal prosecutors to act as “gatekeepers” to preserve enforcement resources, protect government interests and prevent weak cases from resulting in adverse judgments that weaken government enforcement powers. The DOJ’s 7 Grounds […]
In 2018, the Justice Department (DOJ) ordered US Attorneys to aggressively seek dismissal of False Claims Act (FCA) whistleblower qui tam lawsuits that lack merit or don’t serve the government’s interests. However, actual attempts to implement the controversial policy have proven tougher than expected with the courts split over how much discretion the government has to toss qui tam cases it doesn’t like.
The Granston Memo
Under the FCA, lawsuits by whistleblowers (aka, “relators”) must be filed under seal to give the DOJ time to decide whether to intervene in the case. Although the case doesn’t end if the DOJ declines, the decision reduces the relator’s leverage significantly. The FCA also includes what had been a rarely used provision, Section 3170(c)(2)(A), allowing the government to actively seek to have cases that it doesn’t believe serve its interests dismissed.
In January 2018, then DOJ Civil Fraud Section Director Michael Granston issued an internal memorandum instructing US Attorneys to exercise their Section 3170(c)(2)(A) powers more aggressively. The Granston memo calls on federal prosecutors to act as “gatekeepers” to preserve enforcement resources, protect government interests and prevent weak cases from resulting in adverse judgments that weaken government enforcement powers.
The DOJ’s 7 Grounds for Seeking Dismissal of Qui Tam ClaimsThe Granston memo instructing US attorneys to use their Section Section 3170(c)(2)(A) dismissal powers more aggressively lists seven kinds of problematic qui tam claims that they should target for dismissal:
|
Subscribe to view Essential
Start a Free Trial for immediate access to this article