Business Lit Ledger -- Fall 2014

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In This Issue:

- Promoting the False Claims Act By Dismissing Meritless Qui Tam Actions

-Delaware Supreme Court Extends Shareholder Books and Records Inspection Rights to Privileged Internal Investigation Documents

- Stopping the DOJ at the Border? A New Defense to the Reach of Federal Extraterritorial Criminal Action

- California's Automatic Renewal Statute Creates Risk of Class Action Litigation

- New Jersey Supreme Court Recognizes Broad Common Interest Privilege

- Excerpt from Promoting the False Claims Act By Dismissing Meritless Qui Tam Actions:

The False Claims Act's qui tam action is a distinctive and atypical form of litigation. Through the qui tam mechanism, Congress created a unique way for the United States to recover for false claims by empowering private persons— relators—to file suit "for the person and for the United States Government." 31 U.S.C. § 3730(b). While allowing private persons to file suit on behalf of the government, Congress ensured through a variety of means that the government would retain substantial control over cases brought in its name. In addition to the government's powers to intervene and take over the prosecution of a qui tam action, to settle such an action, and to limit or even halt discovery that would interfere with a government investigation, the government also has the power to unilaterally "dismiss [a qui tam] action notwithstanding the objections" of a relator. Id. § 3730(c)(2)(A). Yet the most striking thing about the government's dismissal power is how rarely the government exercises it—only a handful of times since the 1986 amendments to the False Claims Act created the modern qui tam action.

Please see full publication below for more information.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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