PharMerica: Re-Evaluating The 1st-To-File Rule Under KBR

Law360, New York (February 26, 2016, 10:27 AM EST) -- Last year, the U.S. Supreme Court's decision in Kellogg Brown & Root Services Inc. v. United States ex rel. Carter,[1] was highly anticipated because of its impact on the statute of limitations in False Claims Act lawsuits. However, the Supreme Court's decision was also significant because it interpreted the FCA's so-called first-to-file bar, 31 U.S.C. § 3730(b)(5), which prohibits relators from pursuing FCA qui tam claims when another similar lawsuit is pending. The rule provides, "When a person brings an action under …. [the FCA qui tam provision], no person other than the Government may intervene or bring a related action based on the facts underlying the pending action."[2]...

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