Client Alert: New Rule for Seal Violations in FCA Cases

Last week, the Supreme Court clarified the sanctions available when a relator violates the temporary seal provision in the False Claims Act (“FCA”).  In a unanimous opinion, the Court rejected the mandatory dismissal rule favored by many FCA defendants but affirmed that dismissal is one of several possible remedies when a relator publicly discusses a pending qui tam suit before the temporary seal has been lifted.  The decision resolved a split among federal circuit courts and will be guiding precedent in future cases where a relator fails to comply with the FCA’s seal provision.