Qui Tam 101

Another Qui Tam case to be heard by the Supremes

This term, the U.S.Supreme Court just announced that it has agreed to decide the extent to which would-be relators seeking a bounty under the federal False Claims Act must have “direct and independent knowledge” of the specific details of fraud and false claims.   The FCA “requires that an `original source’ must have `direct and independent knowledge of the information on which the allegations are based.” At issue, among other items, is the inappropriate proposed defense advocated requirement that requires that an `original source’ must personally observe the fraud, in whole or in part, as it is occurring.  The court is expected to render its decision by July 2007 in the case, Rockwell International Corp. v. U.S. ex rel. James S. Stone, No. 05-1272.

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