U.S. Supreme Court Affirms ‘Goldilocks’ Approach, Permits Government’s Late Intervention and Dismissal of Qui Tam Litigation Under False Claims Act
Although the government retains authority to dismiss qui tam actions at any stage, the U.S. Supreme Court has ruled it may only do so after successfully moving to intervene in the action
On June 16, 2023, the U.S. Supreme Court issued its opinion in the case of United States ex rel. Polansky v. Executive Health Resources, Inc., announcing that the government, after initially declining to intervene, may dismiss False Claims Act (FCA) qui tam claims over a relator’s objections. The decision affirms the U.S. Court of Appeals for the Third Circuit’s “Goldilocks” approach, holding: 1) the government may move to dismiss a case at any time so long as it first formally intervenes, and 2) the government’s motion is evaluated under Federal Rule of Civil Procedure 41(a)’s generally applicable standards for voluntary dismissals (the Court noted that the standards “will be readily satisfied” in “most FCA cases”).
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