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U.S. to seek dismissal of 'meritless' whistleblower cases - memo
Source: Reuters
#U.S. LEGAL NEWS JANUARY 25, 2018 / 3:22 PM / UPDATED AN HOUR AGO
U.S. to seek dismissal of 'meritless' whistleblower cases - memo
Nate Raymond
3 MIN READ
BOSTON (Reuters) - The U.S. Justice Department has issued a memo that lawyers say could result in fewer whistleblowers being allowed to pursue lawsuits on the agency’s behalf against companies accused of defrauding the government.
The Jan. 10 memo, reviewed by Reuters, advised Justice Department attorneys to consider seeking the dismissal of “meritless” or “parasitic” whistleblower lawsuits that the government decides not to back.
Such lawsuits are filed under the False Claims Act, which allows whistleblowers to sue companies like drugmakers and defence contractors to recover taxpayer money paid out based on false or fraudulent claims.
The Justice Department can intervene in those cases. When it does not, whistleblowers, who can receive a cut of any settlements or verdicts that result from the cases, often pursue the lawsuits on their own on the government’s behalf.
Of the more than $3.7 billion in False Claims Act settlements and judgements the Justice Department reported in 2017, $3.4 billion came from cases initiated by whistleblowers, who were rewarded nearly $393 million.
-snip-
U.S. to seek dismissal of 'meritless' whistleblower cases - memo
Nate Raymond
3 MIN READ
BOSTON (Reuters) - The U.S. Justice Department has issued a memo that lawyers say could result in fewer whistleblowers being allowed to pursue lawsuits on the agency’s behalf against companies accused of defrauding the government.
The Jan. 10 memo, reviewed by Reuters, advised Justice Department attorneys to consider seeking the dismissal of “meritless” or “parasitic” whistleblower lawsuits that the government decides not to back.
Such lawsuits are filed under the False Claims Act, which allows whistleblowers to sue companies like drugmakers and defence contractors to recover taxpayer money paid out based on false or fraudulent claims.
The Justice Department can intervene in those cases. When it does not, whistleblowers, who can receive a cut of any settlements or verdicts that result from the cases, often pursue the lawsuits on their own on the government’s behalf.
Of the more than $3.7 billion in False Claims Act settlements and judgements the Justice Department reported in 2017, $3.4 billion came from cases initiated by whistleblowers, who were rewarded nearly $393 million.
-snip-
Read more: https://www.reuters.com/article/usa-justice-whistleblowers/u-s-to-seek-dismissal-of-meritless-whistleblower-cases-memo-idUSKBN1FE2TY
