DOJ Hammers 'Unprecedented' Rejection Of FCA Dismissal

Law360 (August 22, 2019, 7:50 PM EDT) -- The U.S. Department of Justice is lambasting a California federal judge's rejection of its request to end a whistleblower's False Claims Act suit, deeming it an "unprecedented decision" that usurps executive branch powers.

In a reply brief on Wednesday, the DOJ told the Ninth Circuit that the district judge overstepped by concluding that the government must further investigate a whistleblower suit accusing Academy Mortgage Corp. of pushing through unqualified Federal Housing Administration loans to get government insurance money.

"Consistent with separation-of-powers principles, the FCA properly reserves to the United States the authority to dismiss qui tam suits despite [a whistleblower's] objections,"...

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