Cell Therapeutics Inc v. Lash Group Inc

I. BACKGROUND

A. THE FALSE CLAIMS ACT

A brief review of the Act’s structure is useful in putting the third party claim issue in context. The purpose of the FCA is “to discourage fraud against the government.” Robertson v. Bell Helicopter Textron, Inc., 32 F.3d 948, 951 (5th Cir. 1994). The FCA imposes civil liability on any person who knowingly uses a “false record or statement to get a false or fraudulent claim paid or approved by the Government,” 31 360 CELL THERAPEUTICS v. LASH GROUP U.S.C. § 3729(a)(2) (1984), and any person who “conspires to defraud the Government by getting a false or fraudulent claim allowed or paid.” Id. § 3729(a)(3).1 To encourage the disclo- sure of potential fraud, under the qui tam provisions of the FCA, relators may “bring a civil action for a violation of [§ ] 3729 for the person and for the United States Government.” Id. § 3730(b)(1); United States ex rel. Hall v. Teledyne Wah Chang Albany, 104 F.3d 230, 233 (9th Cir. 1997). If the gov- ernment does not intervene in the suit, the relator may pro- ceed with the FCA litigation. 31 U.S.C. § 3730(c)(3). If the government elects to intervene, the relator remains part of the suit as a…