Public Disclosure and Public Information

Fourth Circuit Dismisses Lawsuit Based on Lawyer’s Knowledge Under the Public Disclosure Bar of the False Claims Act

The Fourth Circuit ruled recently that a False Claims Act case must be dismissed because it was based on information that the attorney representing the qui tam plaintiff had learned during a prior litigation.  In doing so, the court applied what has become known as the “public disclosure bar” – a provision in the False Claims Act that strips a court of jurisdiction to hear cases based on information that has...

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...

Ninth Circuit Victory For Whistleblowers In Narrowing "Public Disclosure" And "First-To-File" Bars To Bringing Qui Tam Actions

In a major victory for whistleblowers, the Ninth Circuit in United States ex rel. Hartpence v. Kinetic Concepts, Inc. narrowed the reach of two significant bars to bringing qui tam lawsuits under the False Claims Act.  Under the so-called "public disclosure" bar, the Ninth Circuit reversed its own precedent and ruled the "original source" exception to the bar does not require the whistleblower to have played a role...

Fourth Circuit Joins Other Circuits In Narrow Read of Public Disclosure Bar

Under the False Claims Act, a whistleblower may be precluded from filing a qui tam lawsuit based on information that has already been publicly disclosed by another source.   This so-called "public disclosure bar" is designed to weed out "parasitic" actions from those brought by whistleblowers with true inside knowledge of fraud.  There has been some disagreement among the courts as to how "public" a disclosure must...