Court Rules in Favor of False Claims Act Sealing Provision

A US Court of Appeals for the 4th Circuit has ruled that the False Claims Act’s sealing provision, which can keep whistleblower complaints sealed for years, does not infringe upon the public’s right to access court proceedings.

The suit was brought by three advocacy groups, including the American Civil Liberties Union, none of whom are whistleblowers. The plaintiffs claimed the Justice Department unlawfully stopped whistleblowers from disclosing any misconduct. Qui tam suits are automatically sealed for at least 60 days while the government decides whether to intervene in the case. This process can keep suits secret for years. The plaintiffs also claimed the law violated the separation of powers doctrine, as judges are not allowed to rule on a case-by-case basis.

The Court disagreed, ruling 2-1 that the law only prohibits whistleblowers from disclosing that they have filed a qui tam suit, not from speaking on the fraud involved. Furthermore, the court highlighted that the plaintiffs were unable to identify a single whistleblower who wished to speak out or felt stifled by the law.

Read the entire article, “Divided Appeals Court Upholds Secrecy of Whistleblower Suits