FCA Original Source: Public Disclosure and the Whistleblower Exception

The False Claims Act can bar relators from proceeding if the fraud allegations are based on publicly disclosed information — such as news reports, government audits, or certain other proceedings — unless an exception applies.

Section 3730(e)(4)(B) describes two routes. One concerns a person who voluntarily disclosed the relevant information to the government before the public disclosure.

The other concerns independent knowledge that materially adds to the publicly disclosed allegations or transactions, coupled with voluntarily providing that information to the government before filing. Being an employee, or repeating a public report, does not by itself resolve the test.

Employees with firsthand documents, emails, billing data, or witness knowledge of how a scheme operated are more likely to survive public disclosure challenges than those repeating already-public allegations.

Public disclosure and first-to-file issues are among the earliest motions defendants file. Experienced qui tam attorneys evaluate these bars before filing. This article is general information, not legal advice.