A pending decision by the Eleventh Circuit Court of Appeals could have major implications for False Claims Acts. The issue focuses on the Act’s qui tam provision (bounty hunter), which a lower court ruled is unconstitutional because the provision allows for bounty hunters to essentially appoint “themselves government officials” forcing the federal government to open an investigation even if it was declined by the U.S. Department of Justice.
If the circuit court agrees with the federal district court and rules against the qui tam provision, it would go against other circuit court decisions, which have previously upheld the legality of the FCA’s bounty hunter provisions.
The circuit court is slated to announce its decision in the near future. Pennsylvania should not rush into adopting a False Claims Act before the issue of constitutionality is resolved. This issue is very likely headed to the US Supreme Court for ultimate determination.
For a more detailed analysis on the implications of the upcoming decision, visit this online article.