Supreme Court to Rule on Seal Rule

The Supreme Court has granted review in State Farm Fire and Cas. Co. v. U.S. ex rel. Rigsby to address the applicable standard for dismissal in False Claims Act cases when whistleblowers, in violation of the statute’s requirements, make public the allegations in their complaint while it is under seal and being investigated by the government. The Court will address a split in which circuits have applied (1) a bright-line rule of dismissal, (2) a rule that considers whether the violation frustrates the congressional goals served by the seal requirement, and (3) a balancing test that focuses on whether the violation actually harms the government.