Dismissing FCA Cases: The Granston Memo In Action

By Jeffrey Belkin and Michael Mortorano (September 28, 2018, 1:31 PM EDT) -- While the False Claims Act can be a financial boon for the federal government, meritless qui tam suits create enormous headaches. The government's decision to decline intervention in these suits often, but not always, results in a qui tam relator dismissing its case. Some relators, perhaps motivated by the FCA's private bounty, continue to press on with claims in the name of the government, despite the government's signal that the claim is not worth pursuing on its own. These suits are not just a plague on defendants, who face protracted litigation after being accused of fraud. They also seriously tax the government, both in the U.S. Department of Justice and at the courts, whose resources are continually expended notwithstanding the DOJ's decision to decline intervention. The solution to this shared problem may be convincing the government to seek dismissal under a little-used FCA provision,[1] which received renewed relevance earlier this year after the leak of a DOJ memorandum from Michael Granston, director of the DOJ Civil Fraud Section.[2]...

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