Phillips & Cohen Statement RE: United States ex rel. Zafirov v. Florida Medical Associates, Inc.
Yesterday, in United States ex rel. Zafirov v. Florida Medical Associates, Inc., the Eleventh Circuit joined four other circuits in holding that the qui tam provisions of the False Claims Act do not violate the Appointments Clause of Article II of the Constitution. The court held that private relators are not officers of the United States, and do not have to be appointed by the President, because they hold a temporary position, do not receive continuing compensation, and have only personal, not continuing, duties.
The much anticipated decision vacated a 2024 district court decision that was the lone case to hold that the qui tam provisions violated the Appointments Clause and which other courts had described as an “outlier.” The Eleventh Circuit remanded the case for the district court to consider the defendants’ arguments that the qui tam provisions are unconstitutional because they violate the Take Care and Vesting Clauses of Article II, which assign certain powers to the Executive Branch of government. All of the circuit courts that have considered those questions have concluded that the qui tam provisions do not violate those provisions either.
“Qui tam actions have a long history in the United States, with laws authorizing such actions adopted before and immediately after the adoption of the Constitution,” said Claire Sylvia, a whistleblower attorney and partner at Phillips & Cohen. “The Supreme Court found that history nearly ‘dispositive’ when it held in 2000 that allowing qui tam relators to pursue cases on behalf of the government does not violate the Constitution’s limits on standing. The Eleventh Circuit’s decision in Zafirov, while narrowly focused on the Appointments Clause, is consistent with that longstanding history.”
“Many whistleblowers pursue False Claims Act cases out of deep concern that federal funds should be used as Congress intended. These cases often vindicate important policy interests in protecting the health and safety of those who depend on federal health programs, including Medicare and Medicaid, and those who serve our country in the armed services,” said Colette Matzzie, a whistleblower attorney and partner at Phillips & Cohen. “The 11th Circuit’s decision affirms the constitutionality of the well-established qui tam mechanism that empowers ordinary citizens to redress fraud in vital federal programs on behalf of the United States.”
“This was a good day for taxpayers, as qui tam actions have been critical to recovering billions of dollars lost to the government through fraud,” said Stephen Hasegawa, a whistleblower attorney and partner at Phillips & Cohen. “Congress sought to enlist the aid of private citizens in combatting fraud, while providing the government the ability to exercise control, and that policy choice has been wildly successful on behalf of American taxpayers.”
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Phillips & Cohen is the nation’s most successful law firm representing whistleblowers. The firm’s cases have helped recover more than $13 billion in civil settlements and criminal fines. Phillips & Cohen represents whistleblowers in qui tam lawsuits as well as whistleblower claims under other reward programs, including the SEC, CFTC, and IRS whistleblower programs.