The Supreme Court Confirms The Government’s Significant Discretion To Dismiss False Claims Act Cases

On June 16, 2023, the Supreme Court ruled in United States ex rel. Polansky v. Executive Health Resources, Inc., that (i) under the False Claims Act, the government may move to dismiss a False Claims Act (“FCA”) action pursuant to 31 U.S.C. § 3730(c)(2)(A) and (ii) in assessing the government’s motion to dismiss an FCA action over a relator’s objection under Federal Rule of Civil Procedure 41, the government should be afforded substantial deference. This decision is a strong endorsement of the government’s right to dismiss cases brought by relators under the FCA that are frivolous, inconsistent with government policy, or wasteful of the time of government employees, even when the relator objects. As discussed below, defendants should leverage Polansky to press the government to seek the dismissal of FCA cases that fall into these categories.

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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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