On February 25, 2015, the Sixth Circuit became the latest federal court of appeals to weigh in on the scope of the False Claims Act’s (FCA) public disclosure bar in its decision in United States ex rel. Whipple v. Chattanooga-Hamilton County Hospital Authority. Specifically, the Sixth Circuit held that the government’s earlier administrative audit and investigation was not a bar to FCA liability, continuing the trend among Courts of Appeal of narrowing the scope of the FCA’s public disclosure bar.

FALSE CLAIMS ACT, QUI TAM ACTIONS AND THE PUBLIC DISCLOSURE BAR -

The FCA imposes civil liability when false or fraudulent claims for payment are presented to the government. The Act authorizes “qui tam” actions in which private party whistleblowers, known as relators, bring civil actions in the government’s name. If a qui tam action is successful, the relator shares in the proceeds of the action or settlement. A relator seeking to bring a qui tam action under the FCA must first disclose his or her claims to the government. The government may then elect to intervene or to allow the relator to proceed with the lawsuit.