A new case the U.S. Supreme Court will hear may set new limits on qui tam lawsuits against drug makers, biotechnology companies and other businesses. The suit concerns a North Carolina water district that was accused of fraudulently seeking federal money for storm cleanup. Although the main allegations had already been made public, a federal appeals court ruled that a whistleblower could sue the district under the U.S. False Claims Act. The Pharmaceutical Research and Manufacturers of America and the Biotechnology Industry Organization said that if the Supreme Court does not take up the case, False Claims lawsuits would “skyrocket.”

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