Appeals Court Upholds False Claims Act Whistleblower Suits, Rejecting Constitutional Challenge
The U.S. Court of Appeals for the Eleventh Circuit has ruled that False Claims Act (FCA) whistleblower suits do not violate Article II of the U.S. Constitution. This decision allows a Medicare fraud lawsuit brought by whistleblower Clarissa Zafirov against Florida Medical Associates to proceed. The appeals panel reversed a 2024 federal district court opinion by Judge Kathryn Kimball Mizelle, which had argued that FCA whistleblower suits violate the appointments clause of Article II by allowing 'unaccountable' private actors to sue on the government's behalf. The Eleventh Circuit concluded that whistleblowers do not hold continuous positions and therefore are not officers requiring presidential appointment. This ruling aligns with other circuits, preventing a split in appellate court decisions on this issue. The Justice Department, which recovered $6.8 billion from FCA suits in fiscal year 2025, with $5.3 billion from whistleblower suits, is expected to welcome this decision.