The federal False Claims Act (“FCA”) gives whistleblowers, also known as “qui tam relators,” the opportunity to bring suits, in the name of the federal government, against corporations or individuals that knowingly submit false or fraudulent claims to the federal government, or cause such claims to be submitted. These suits, known as qui tam actions, are filed under seal, which provides the federal government with an opportunity to investigate the qui tam relator’s claims and decide whether to intervene in the action. The FCA is complex statute that contains numerous requirements and statutory bars. For example, in some instances, relators are barred from filing or pursuing qui tam actions, when the allegations set forth in the qui tam are based upon information that had already been disclosed to the public at the time the qui tam was filed. This bar is commonly referred to as the “public disclosure bar.”
If applied by a court, the public disclosure bar could mark the end of a qui tam suit. For example, on December 12, 2019, a federal judge in Michigan dismissed a qui tam complaint brought by a pharmacist against Rite Aid Corp. The qui tam complaint was unsealed in 2017, after a five and a half year investigation by the government into allegations that Rite Aid submitted false claims to the federal government by circumventing a requirement that it charge Medicare the “usual and customary” price for prescription drugs dispensed to Medicare patients. The judge ruled that because the Connecticut Attorney General’s office had publicly announced, back in 2010 – prior to the date on which the qui tam complaint was filed – that it had been investigating Rite Aid’s pricing scheme (the same pricing scheme alleged in the qui tam), the relator-pharmacist was not an original source of the information, and, resultantly, failed to overcome the public disclosure bar.
How Frier Levitt Can Help
Potential relators should be aware of the importance of ensuring that their qui tam cases survive the technical requirements of the FCA. Frier Levitt has tremendous experience in representing qui tam relators and navigating these complexities. If you believe you may have a basis on which to file a qui tam complaint, contact Frier Levitt today to speak with an attorney.
