Analysis (this detailed description of the case- usually a paragraph or two): This brief asks the 3rd Circuit to reevaluate the constitutionality of qui tam provisions of the False Claims Act because private parties are increasingly using these claims to promote personal gain, leading to burdensome costs on consumers and businesses. In this case, a jury awarded a staggering $1.64B to two qui tam “relators” who allege the company defrauded the government when pharmacies submitted claims for off-label uses of its HIV drugs—a legally permissible practice under federal law.
We argue that the unregulated FCA ecosystem is creating real world impacts on the public and American businesses, particularly in the healthcare industry. Often, even when the government has expressly declined to pursue these cases, private parties have continued to exploit statutory ambiguity in their own favor. The zealousness of FCA suits stymies innovation and shareholder returns; companies face severe penalties and time-consuming litigation that often incentivize settlements of meritless claims.