Supreme Court Rules Violation of FCA's Secrecy Requirement Does Not Lead to Dismissal of Case

December 07, 2016

In a unanimous ruling yesterday, the U.S. Supreme Court said that violating the federal False Claims Act’s (FCA) secrecy requirement does not automatically mean a complaint should be dismissed.

The ruling upheld a decision by the U.S. Court of Appeals for the Fifth Circuit, who in 2015 choose not to dismiss a whistleblower complaint against State Farm, even though “a lawyer for the whistleblowers violated the seal requirement in alerting news outlets to the existence of the then-sealed complaint,” reports the National Law Journal.

The Supreme Court’s ruling noted that, “remedial tools like monetary penalties or attorney discipline remain available to punish and deter seal violations even when dismissal is not appropriate.”