Eleventh Circuit Rejects FCA Qui Tam Constitutional Challenge
A key appellate decision confirms that the False Claims Act's whistleblower provisions are consistent with the Appointments Clause and Take Care Clause of the US Constitution.
The US Court of Appeals for the Eleventh Circuit has held that the qui tam provisions of the False Claims Act (FCA) do not violate the Constitution. This ruling addresses a growing line of defense arguments that the FCA improperly delegates executive enforcement authority to private citizens (relators) in violation of the Appointments Clause and the Take Care Clause. The decision preserves the government's primary tool for combating fraud in federal spending.
For counsel and clients in the healthcare, government contracting, and other federally-funded sectors, this decision reaffirms the significant risk posed by whistleblower-initiated FCA litigation within the Eleventh Circuit (covering Alabama, Florida, and Georgia). While defendants in other jurisdictions may continue to raise this constitutional challenge, the ruling creates a strong persuasive counterargument and contributes to a developing circuit split that could ultimately invite Supreme Court review. Companies should continue to maintain robust compliance programs to mitigate the underlying risk of an FCA claim.