In a report on the U.S. Department of Justice’s (DOJ) move to seek dismissal of several qui tam False Claims Act (FCA) lawsuits, the Pink Sheet, a leading Pharmaceutical news outlet, says the use of the Granston memo should “be a morale booster” to those who have pointed to abuse of the whistleblower system.
Last week, the DOJ sought to dismiss 10 such cases after learning that they were “cloned complaints” filed by a company created to file these lawsuits. The move is one of the most significant Granston Memo actions, which instructs U.S. attorneys to consider moving to dismiss a qui tam complaint if the government declines to intervene. In the Pink Sheet article, U.S. Chamber Institute for Legal Reform Executive Vice President Harold Kim called the DOJ’s motion a “bombshell.”
Kim said the FCA has “been transformed into a lucrative money machine for plaintiffs’ lawyers and their clients – while hurting American businesses and taxpayers.”