The U.S. Supreme Court has agreed to consider whether the Government can dismiss a False Claims Act ("FCA") lawsuit pursuant to 31 U.S.C. ' 3730(c)(2)(A) over the Relator's objections after initially choosing not to intervene in the case and, if so, what standard applies. The Supreme Court's decision should resolve a circuit split over whether and under what circumstances the Government can invoke its authority to dismiss qui tam cases when it initially declined intervention.
Polansky's Claims
Jesse Polansky brought a qui tam action under the FCA on behalf of the United States, alleging that Executive Health Resources, Inc. ("EHR") caused its client hospitals to fraudulently bill Medicare and Medicaid by falsely designating patient admissions as inpatient when they should have been marked as outpatient. Polansky filed his Complaint under seal in July 2012, and the Government declined to intervene in the case in June 2014. Thereafter, Polansky served the unsealed Complaint on EHR and litigated the case before the District Court for the Eastern District of Pennsylvania.
In August 2019, five years after choosing not to intervene, the Government filed a Motion to Dismiss Relator's Complaint under 31 U.S.C. ' 3730(c)(2)(A), citing the low likelihood of success, the concern that material it deems privileged has been produced and will be used, and the expense of the...
