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1 1 (December 2, 2022)

handle is hein.crs/govejos0001 and id is 1 raw text is: Con gressionaI AaResearch Service SCOTUS Considers Standards for Government Dismissal of Qui Tam Cases Under the False Claims Act December 2, 2022 On December 6, 2022, the Supreme Court is scheduled to hear oral arguments in a case concerning whether, and under what legal standard, the United States can dismiss a qui tam action brought in its name under the False Claims Act (FCA) after initially declining to take over that action. United States ex rel. Polansky v. Executive Health Resources, Inc. presents an issue that has divided the circuit courts for almost 20 years and that Congress potentially could clarify through amendments to the FCA. Background on FCA Litigation and the Circuit Split The FCA prohibits any person from defrauding the United States by knowingly presenting a false or fraudulent claim for payment or approval. Violators face up to treble damages and a civil penalty of up to $10,000 per claim, as adjusted for inflation. In addition to authorizing enforcement by the Attorney General, the FCA authorizes a private individual, called a relator, to bring a civil action against a person or entity that has allegedly violated the statute. Referred to as a qui tam action, the lawsuit is brought in the government's name, on behalf of the relator and the government. When a qui tam action is initiated, the FCA gives the government 60 days, plus any judicial extensions, to investigate the allegations while the complaint remains under seal-that is, unavailable to the defendant or to the public. By the end of the seal period, the government must elect to either: (1) proceed with the action, in which case the government conduct[s] the action; or (2) decline[] to take over the action, in which case the relator has the right to conduct the action. The relator's share of the proceeds in a successful qui tam action increases if the government declines to intervene. Central to the Polansky case, the FCA also provides that the government may dismiss the action notwithstanding the [relator's] objections if the government notifies the relator of its motion to dismiss and the court has provided the relator with an opportunity for a hearing on the motion. Circuit courts are divided over the application of this provision in circumstances where the government initially declined to take over the action. Congressional Research Service https://crsreports.congress.gov LSB10868 CRS Legal Sidebar Prepared for Members and Committees of Congress

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