The Boston Globe is reporting that the Supreme Court is considering taking up a case that “might set new limits on whistle-blower lawsuits against drugmakers, biotechnology companies, and other businesses.” The court has requested advice from the Department of Justice regarding the suit.
The case in question deals with the False Claims Act and specifically whether FCA cases can be based on allegations which have previously been made public in state government documents. Limitations have currently only been applied when the whistleblowers’ allegations have previously seen light in Federal Government documents.
Industry groups support the new limitations, which is no surprise considering the FCA has been the most effective fraud-fighting law in history, netting over $1 Billion in fraud recoveries for American taxpayers last year alone.
FCA-type laws are also helping uncover massive government contractor fraud schemes in countries like South Korea
