Eleventh Circuit Rejects Appointments Clause Challenge to FCA
A recent Eleventh Circuit decision rejected a constitutional challenge to the False Claims Act, affirming that private whistleblowers may continue to bring suits on behalf of the government.
The US Court of Appeals for the Eleventh Circuit has rejected a significant constitutional challenge to the False Claims Act, holding that its qui tam provisions do not violate the Appointments Clause. This decision affirms the long-standing practice of allowing private whistleblowers, known as relators, to sue on behalf of the government and share in any recovery. The defendants had argued that empowering private citizens to conduct litigation in the government's name unconstitutionally infringes upon the executive branch's authority. This ruling is a major setback for government contractors and other organizations in the healthcare, life sciences, and defense industries that had hoped to dismantle the primary enforcement mechanism of the FCA. The decision aligns with previous rulings from other federal circuits, solidifying the legal foundation of the qui tam framework for now. Counsel for companies facing FCA scrutiny should note that this constitutional defense is currently unviable in the Eleventh Circuit. The key development to watch is whether a different circuit court accepts this or a similar argument, which would create a circuit split and significantly increase the likelihood of Supreme Court review.