Insights

On September 1, 2026, the Eleventh Circuit issued its long-anticipated decision in U.S. ex rel. Zafirov v. Florida Medical Associates LLC, holding that the qui tam provisions of the False Claims Act are constitutional because relators are not officers of the United States who occupy continuing positions established by law. The decision overturned the 2024 district court ruling that sparked a wave of constitutional challenges to qui tam suits and aligns the Eleventh Circuit with the Fifth, Sixth, Ninth, and Tenth Circuits on the issue. The constitutional debate is far from over, however, as the decision is limited to the constitutionality under the Appointments Clause. The court remanded the case for further evaluation of the parties’ Take Care and Vesting Clause arguments. At the same time, similar constitutional arguments are pending in the Third Circuit, related to the largest-ever FCA judgment in a non-intervened case, and multiple Supreme Court justices have already signaled potential willingness to weigh in on the qui tam provisions’ constitutionality. Crowell's FCA attorneys explain these developments and what's next in a “Feature Comment” published in The Government Contractor.

On Tuesday, August 25, 2026, the U.S. Department of Justice (DOJ) announced that Deloitte LLP and several of its subsidiaries agreed to pay, collectively, $21.5 million to resolve allegations that Deloitte violated the False Claims Act (FCA) by failing to comply with new anti-discrimination requirements incorporated into its federal contracts, by discriminating against employees and applicants on the basis of race and sex, and by allocating and seeking reimbursement for costs related to those practices under its federal government contracts. This resolution is the second of its kind under DOJ’s recently launched Civil Rights Fraud Initiative, following a similar settlement by IBM in April 2026.

On September 1, 2026, the Eleventh Circuit issued its long-anticipated decision in United States v. Florida Medical Associates, LLC, – F.4th –, 2026 WL 2581886 (11th Cir. Sept. 1, 2026) (the “Zafirov appeal”) overturning the district court and holding that the qui tam provisions of the False Claims Act (“FCA”) do not violate the Appointments Clause of Article II of the United States Constitution because relators are not officers of the United States that occupy “continuing positions.” The Eleventh Circuit did not reach other arguments made by the parties and remanded the case to the District Court for the Middle District of Florida to address two other constitutional arguments challenging the FCA’s qui tam provisions based on Article II’s Vesting and Take Care Clauses.