Over seven months ago, the Supreme Court asked the Solicitor General for the views of the United States inĀ Gilead Sciences, Inc. v. United States ex rel. Campie, an important False Claims Act case. Last Friday evening, the Solicitor General responded by asking the Court to deny certiorari.
But what appeared to be a major setback for the Petitioner, Gilead Sciences, Inc., actually offered an unexpected route to victory. The Solicitor General agreed with the relatorsā (and the Ninth Circuitās) position that the Governmentās continued payment did not necessarily undermine the materiality of the alleged violations. But the Solicitor General told the Court that, were the case remanded to the district court, the United States would dismiss the case to avoid burdensome litigation costs and other litigation-related interference with government operations.
That surprising announcement sheds further light on the DOJās FCA-enforcement priorities, consistent with its recent amendments to the Yates Memo. Those developments provide valuable insight for companies facingĀ qui tamĀ FCA actions.
