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Are there any pitfalls that prevent valid qui tam
claims under the False Claims Act from being successful?
Yes. There are many. The False Claims Act has several
limitations on its scope. The law has very peculiar and
specialized rules called the "public disclosure" and "original
source" jurisdictional bars. (These are further explained in
three subsequent questions and answers.) These are different rules from
those in any other law in existence and require
very special knowledge to understand. If not correctly researched
and handled, a qui tam lawsuit can fail because of the public
disclosure and original source provisions--even though the case
accurately alleges millions of dollars of Government contracting
fraud.
Additionally, no qui tam actions can be based on allegations
already the subject of a federal civil suit or a federal
administrative civil money penalty proceeding in which the federal
Government is a party. This provision eliminates any "parasitical"
actions that attempt to benefit from the Government’s own
independent efforts to
recover losses.
A variety of other False Claims Act limitations affect who can sue
or be sued successfully. Also, the law is relatively new and there
are important differences among the courts as to who can sue or be
sued. Thus, care should be taken as to where a case is filed. A
case might be successful in one judicial court district, but
dismissed in another.
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