Pharma Could Face Fewer False Claims Act Suits If Supreme Court Concurs With Government
High court is to determine whether the government can dismiss an FCA complaint after initially declining to take it on. In recent years, the government has dismissed numerous qui tam suits against pharma companies in which it did not intervene.
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Government can file a motion to dismiss an FCA case whenever it intervenes, whether it does so during the seal period or later, court says. District courts should assess motion to dismiss using rules in civil litigation.
Justices cite changing circumstances, constitutional concerns in preventing government from seeking dismissal of a case in which it initially declined to intervene. They also question whether government should intervene before moving to dismiss.
Fallout from Supreme Court's Escobar decision and Department of Justice memos could impact types of healthcare fraud complaints in which the government intervenes.