In a unanimous decision, the United States Supreme Court ruled in State Farm Fire and Casualty Co. v. U.S. ex rel. Rigsby that a seal breach in a qui tam lawsuit does not automatically require dismissal of the case. This landmark ruling directly rejected arguments made by government contractors and the U.S. Chamber of Commerce, affirming that trial courts have discretion to determine the appropriate remedy when a case’s seal is violated.
The decision is a significant win for individuals pursuing qui tam lawsuits under the False Claims Act, reinforcing that technical seal violations cannot be used by defendants as an automatic escape from liability. The Supreme Court’s opinion strengthens the integrity of the whistleblower lawsuit process by prioritizing the merits of the case over procedural missteps.
This ruling ensures that a qui tam lawsuit will not be dismissed solely due to a seal breach—protecting whistleblower rights and encouraging insiders to come forward with information about fraud against the government. It represents a major step forward in supporting whistleblower protections and holding wrongdoers accountable.
Click here for the Court’s opinion.
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