United States v. American Production Industries, Inc.

Ara Papazian and Nabil Hanna (“relators”) appeal from the district court’s dismissal of their qui tam complaint brought pursuant to the False Claims Act (“FCA”), 31 U.S.C. § 3729 et seq. On appeal the relators argue that the district court erred by finding that it lacked jurisdiction over the suit because a settlement had previously been agreed to by the Department of Justice (“DoJ”) and certain of the defendants. Because the relators lack standing under the DoJ regulations to challenge the settlements, we affirm.

*406 FACTS AND PRIOR PROCEEDINGS

In April 1991, Papazian and Hanna met with Agent Stephen Johanson of the Defense Criminal Investigative Service to discuss information concerning the adulteration of juice products which were being sold to the Government. Papazian and Hanna told Agent Johanson that they were coming forward with the information because they feared criminal prosecution and loss of their jobs. Agent Johanson began an investigation, and in September 1991, the U.S. Attorney’s Office accepted the case for criminal prosecution. On April 29, 1992, Agent Jo-hanson learned that at some future time Papazian and Hanna intended to file a qui tam action. However,…