Factors for Dismissing Whistleblower Cases
The Justice Department has issued a memorandum outlining factors that department attorneys should consider when determining whether to seek dismissal of a whistleblower (qui tam) suit under the False Claims Act. The document notes there have been record increases in the number of whistleblower suits over the last few years. “Even in non-intervened cases,” it says, “the government expends significant resources in monitoring these cases and sometimes must produce discovery or otherwise participate. If the cases lack substantial merit, they can generate adverse decisions that affect the government’s ability to enforce the False Claims Act. Thus, when evaluating a recommendation to decline intervention in a whistleblower action, attorneys should also consider whether the government’s interests are served, in addition, by seeking dismissal….”
The memo lists seven factors as starting points for considering whether to seek dismissal of a case, noting there also may be other reasons for concluding that the government’s interests are best served by dismissal of such a suit.