Justices Should Consider Harm To Defendants In FCA Case

Law360, New York (November 3, 2016, 11:39 AM EDT) -- The unresolved question debated at the Nov. 1 U.S. Supreme Court hearing in State Farm Fire & Casualty Co. v. United States ex rel. Rigsby, No. 15-513, involves the standard for dismissing a False Claims Act qui tam suit where the relator (i.e., whistleblower plaintiff), or the relator's attorney, willfully violates the statute's mandatory seal requirement. See 31 U.S.C. § 3730(b)(2). Some of the justices' questions focused on how heavily to weigh the harm, if any, that a particular seal violation actually inflicts on the government, especially in cases where the U.S. Department of Justice's otherwise confidential investigation of a qui tam relator's allegations has not been impaired. Seal violations, however, also can harm a qui tam defendant's reputation, financial position and ability to compete....

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