The U.S. Supreme Court on Friday preserved the Justice Department's power to unilaterally dismiss lawsuits filed under a law that lets whistleblowers sue businesses on behalf of the government to recover taxpayer money paid to companies based on false claims in exchange for a portion of any recovery.
to unilaterally dismiss lawsuits filed under a law that lets whistleblowers sue businesses on behalf of the government to recover taxpayer money paid to companies based on false claims in exchange for a portion of any recovery.
"Today, we hold that the government may seek dismissal of an FCA action over a relator's objection so long as it intervened sometime in the litigation, whether at the outset or afterward," Kagan wrote.Whistleblower cases brought under the False Claims Act resulted in $48.2 billion in recoveries from 1987 to 2021, according to Justice Department data.
The Justice Department sought dismissal of Polansky's lawsuit in 2019, citing concerns including the "tremendous" burden of requests for the government to produce documents. Executive Health Resources denied wrongdoing and argued that the department had the right to dismiss the case over Polansky's objections.
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