The Department of Justice recently issued an internal guidance memo to DOJ attorneys regarding the dismissal of meritless False Claims Act (FCA) cases. Michael Granston, the Director of DOJ’s Civil Fraud Section, first made headlines in October 2017 when he publicly acknowledged the burden imposed by meritless FCA cases and suggested that DOJ would reviewits historic practice of not seeking to dismiss qui tam cases where it declines to intervene. DOJ’s recent memo formalizes that suggested approach and signals the important institutional interest DOJ has in dismissing cases that will unnecessarily consume scarce resources and could create adverse legal precedent.

The stated purpose of the memo is to provide a “general framework for evaluating when to seek dismissal” and to “ensure a consistent approach to this issue across the Department.” While its full impact remains to be seen, in the interim it provides companies with a roadmap for making presentations by laying out the factors DOJ will consider in deciding whether to intervene or seek dismissal of qui tam actions.