A unanimous Supreme Court ruled on Tuesday that violations of the False Claims Act’s seal provision do not require automatic dismissal of suits brought under the Act.
As we reported in back in June, the Supreme Court had agreed to resolve a split among the circuits regarding what standard governs the decision to dismiss a relator’s claim for violation of the FCA’s seal provision, 31 U.S.C. § 3730(b)(2). The relators, insurance adjustors employed by State Farm, had sued State Farm a decade ago alleging that the insurance giant fraudulently misclassified claims related to flood policies in order to get them paid by the federal government in the aftermath of Hurricane Katrina. Although the complaint had been filed under seal, the relators’ attorney had on multiple occasions leaked evidence about the case to various news outlets.Read More