DOJ's New Policy On FCA Dismissals Highlights Circuit Split

By Nicholas Peterson and Madeline Cohen (August 20, 2018, 1:14 PM EDT) -- In January 2018, the U.S. Department of Justice issued an internal memorandum outlining a new department policy for dismissing qui tam actions when the government declines to intervene. Seeking to manage the constant influx of new qui tam cases, the Granston memo directs DOJ attorneys to consider moving to dismiss such actions if they appear deficient, either on their face or following an investigation of the relator's claims. Although the department has long had the authority to dismiss qui tam actions under the False Claims Act, 31 U.S.C. § 3730(c)(2)(A), the Granston memo could spur greater use of the department's dismissal authority. Indeed, Acting Assistant Attorney General Jesse Panuccio recently recommended that the DOJ use its dismissal power "consistently, but judiciously." With the prospect of more dismissals under Section 3730(c)(2)(A), qui tam litigants should familiarize themselves with an outstanding circuit split over the extent of the government's dismissal authority under this section....

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