Labor & Employment Law

SCOTUS: Qui tam suit is barred by prior disclosure in county and state reports (7-2)

Today the US Supreme Court decided Graham County Soil Dist v. US ex rel. Wilson (US Supreme Court 03/30/2010)

Karen Wilson, former employee of the Graham County Soil and Water Conservation District, brought a qui tam suit under the federal False Claims Act against various entities alleging that they had made false claims against the United States. In a qui tam action an individual sues in the name of the United States and is allowed to keep a portion of the proceeds. However, there must not have been a prior public disclosure of the information of alleged wrongdoing that forms the basis of the suit. If there has been a prior public disclosure of information in an ?administrative ... report ... audit, or investigation,? then the district court lacks jurisdiction over the case.

In this case, both the county and the State issued reports identifying potential irregularities. After those reports were issued, Wilson filed her qui tam action.

The US Supreme Court held that the reference to "administrative" reports, audits, and investigations encompasses disclosures made in state and local sources as well as federal sources. Therefore, the qui tam suit is barred.

Full post as published by Ross' Employment Law Blog on March 30, 2010 (boomark / email).