Original Source

First Circuit Revives Whistleblower Suit Against PharMerica, Rejecting Public Disclosure Challenge

Rejecting an argument that only a fraudster could love, the First Circuit Court of Appeals revived a whistleblower’s lawsuit and rightly recognized that whistleblowers can have “direct” knowledge of fraud even if they did not themselves participate in the fraud. In United States ex rel. Banigan & Templin, et al. v. PharMerica, Inc., the First Circuit interpreted the so-called “original source” provision of...

Third Circuit Opens Door Wider For Whistleblowers Under Original Source Exception To False Claims Act Public Disclosure Bar

Under the False Claims Act, the public disclosure bar prevents whistleblower suits challenging fraud already disclosed through certain public channels like the news media.  The rule is designed to discourage whistleblower actions based on information already in the public domain, unless it was the whistleblower that actually put it there.  It is supposed to neatly balance the twin-goals of discouraging so-called...

Third Circuit Rejects Qui Tam Lawsuit On Original Source Requirement

By Jason Enzler When a False Claims Act lawsuit is brought by a qui tam relator that alleges a fraudulent scheme, and those allegations have already been publicly disclosed, that is often the end of the matter.  Case dismissed.  Under some circumstances, however, the relator can keep his case alive by showing that he is the “original source” of the publicly disclosed information.  To do so, the relator must...