Bass, Berry & Sims attorney Scott Gallisdorfer authored an article published as part of Law360’s Expert Analysis series in which he provided insight on a federal court’s recent and significant decision holding that the qui tam provisions of the False Claims Act (FCA) violate the Appointments Clause of the U.S. Constitution.
Scott said a September 30 decision from the U.S. District Court for the Middle District of Florida in the U.S. ex rel. Zafirov v. Florida Medical Associates LLC case is the first time the qui tam provisions of the FCA have been found to violate the U.S. Constitution. The judge ruled that qui tam relators function as self-appointed “Officers of the United States” and that their authority therefore conflicts with Article II of the Constitution.
In the short term, the decision may not cause big changes for all FCA defendants, as other courts have previously rejected similar arguments and the Zafirov relator is likely to appeal the ruling. However, Scott said a future ruling by the U.S. Court of Appeals for the Eleventh Circuit could “be a seismic event for FCA litigants.”
“Whatever happens next, Zafirov marks a turning point for constitutional challenges to the qui tam provisions. With one court’s endorsement, more such challenges are sure to follow. FCA defendants and their counsel must closely monitor any future developments,” Scott said.
The full article, “Next Steps For FCA Defendants After Fla. Qui Tam Ruling,” was published by Law360 on October 17 and is available online (subscription may be required).