Today, the Supreme Court granted certiorari in one case of interest to the business community:
False Claims Act—Remedy for Release of Sealed Complaint
State Farm Fire & Casualty Co. v. United States ex rel. Rigsby, No. 15-513
The False Claims Act permits a qui tam relator to bring a civil action alleging that a false claim has been made against the United States. The complaint must be filed under seal, in part to permit the United States an opportunity to investigate the claim to determine whether it wishes to intervene. Today, the Supreme Court agreed to decide what the remedy should be when the qui tam relator violates the seal requirement by disclosing the existence of the False Claims Act suit.
The lower courts that have considered this issue are divided. Some courts (including the Fifth Circuit, in the decision pending Supreme Court review) have applied a balancing test, pursuant to which a complaint will be dismissed only if the violation frustrates the purpose of the seal requirement or causes actual harm to the Government. The Sixth Circuit, by contrast, has held that any violation of the seal requirement requires dismissal of the complaint.
The Court previously invited the Solicitor General to express the view of the United States as to whether certiorari should be granted. The Solicitor General opposed review, noting that even the Sixth Circuit might have adopted a different approach in this case, where the violation was not within the 60-day sealing period mandated by Congress but during an extension granted by the court in its discretion.
This case will dictate whether qui tam relators can engage in media campaigns to advance their litigation interests. The case will be argued in the Term beginning October 2016.
Please visit us at appellate.net
Visit us at mayerbrown.com
Mayer Brown is a global legal services provider comprising legal practices that are separate entities (the "Mayer Brown Practices"). The Mayer Brown Practices are: Mayer Brown LLP and Mayer Brown Europe – Brussels LLP, both limited liability partnerships established in Illinois USA; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales (authorized and regulated by the Solicitors Regulation Authority and registered in England and Wales number OC 303359); Mayer Brown, a SELAS established in France; Mayer Brown JSM, a Hong Kong partnership and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.
© Copyright 2016. The Mayer Brown Practices. All rights reserved.
This Mayer Brown article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.