On October 29, the U.S. government and whistleblower Clarissa Zafirov filed notices of appeal following a landmark district court ruling that found the False Claims Act’s qui tam whistleblower provisions unconstitutional.
On September 30, the U.S. District Court for the Middle District of Florida ruled in United States ex rel. Clarissa Zafirov v. Florida Medical Associates, LLC, that the FCA’s qui tam provisions violate the Appointments Clause of the U.S. Constitution.
Under the qui tam provisions, which date back to the Civil War, whistleblowers may file lawsuits on behalf of the U.S. government alleging government contracting fraud. The provisions have been an immense success, turning the False Claims Act into America’s premier anti-fraud law. Since the law was modernized in 1986, qui tam whistleblower suits have led to over $50 billion in recoveries.
In Zafirov’s case, she alleged that the Florida Medical Associates and others submitted false claims to Medicare by misrepresenting their patients’ medical conditions. However, the court ruled that Zafirov’s role as a self-appointed qui tam relator—pursuing claims on behalf of the federal government without being appointed by the President, a department head, or a court—violates the Appointments Clause of Article II of the Constitution.
Whistleblower advocates have warned of dire consequences should the ruling stand and also outlined why it is inconsistent with prior case precedent and misinterprets the qui tam provisions.
The appeal will be heard by the U.S. Court of Appeals for the Eleventh Circuit.
Further Reading:
Federal Court Declares False Claims Act’s Qui Tam Provision Unconstitutional