FCA Relator Suit Success Varies by Circuit: Legal Insight
Bloomberg Law
In this Bloomberg Law article, Ian Herbert, Bradley Markano, and Connor Farrell examine how the success of False Claims Act (FCA) suits brought by whistleblowers can vary significantly depending on the venue where claims are brought. The authors highlight that while FCA filings continue to rise – reaching a record 979 qui tam lawsuits last fiscal year – the likelihood of surviving a motion to dismiss on presentment grounds depends heavily on where the case is filed. The authors outline the differing standards applied across circuits. The Sixth and Eleventh Circuits impose the strictest requirements. In contrast, the Fourth and Seventh Circuits apply a more flexible, intermediate standard that is more favorable to relators. Most other circuits follow the Fifth Circuit's Grubbs standard, which permits a strong inference of presentment based on detailed allegations of fraudulent schemes. Herbert, Markano, and Farrell emphasize that understanding these circuit-specific standards is critical for both relators and defense counsel.