The Seventh Circuit has both fortified the DOJ position that it has broad authority to proactively dismiss actions brought under the False Claims Act’s qui tam provisions, and carved a new path for defending those motions. The appeals panel reversed a district court decision that DOJ failed to provide a sufficient basis for dismissal, adding to the body of cases siding with DOJ on this issue and increasing the difficulty of challenging a dismissal. However, the court took a novel route to its decision, creating a three-way circuit split. Combined with recent rumblings from Congress, the rules for affirmative qui tam dismissals may soon be in flux.
