What's Happening?
The U.S. Court of Appeals for the Sixth Circuit has declined to consider a constitutional challenge to the False Claims Act (FCA) provision brought by Ohio-based TriHealth Inc. and other healthcare providers. The court reaffirmed its 1994 decision in United
States ex rel. Taxpayers Against Fraud v. Gen. Electric Co., which upheld the constitutionality of whistleblower suits under the FCA. TriHealth's petition argued that such suits violate the appointments clause of Article II, but the court found no need for an interlocutory appeal.
Why It's Important?
The Sixth Circuit's decision reinforces the legal framework supporting whistleblower actions under the FCA, which are crucial for uncovering fraud against the government. This ruling maintains the ability of whistleblowers to bring suits that can lead to significant recoveries for the government and deter fraudulent activities. The decision also underscores the judiciary's role in interpreting constitutional challenges and upholding established legal precedents. Healthcare providers and other industries subject to FCA suits must continue to ensure compliance with federal regulations to avoid potential litigation.
