Federal District Court Judge Rules Qui Tam Provision of the False Claims Act as Unconstitutional

On September 30, 2024, U.S. District Judge Kathryn Kimball Mizelle of the Middle District of Florida dismissed United States ex rel. Zafirov v. Florida Medical Associates, LLC, a case that involved a False Claims Act (FCA) qui tam lawsuit. The plaintiff, an employee of the defendant's medical practice, alleged that the employer had misrepresented patient diagnoses to Medicare. On a motion for judgment on the pleadings, Judge Mizelle held the FCA's qui tam provisions to be unconstitutional,  finding that the relator, Zafirov, functioned as an “officer of the United States.” She explained that, in an FCA case, the relator carries out an “executive function;” however, this provision violates the Appointments Clause of Article II of the U.S. Constitution. According to the Judge, Congress cannot authorize a private relator to exercise executive authority in representing the United States' interests in civil litigation. This decision could potentially lead to significant changes in the use of qui tam actions under the FCA in the future, creating anticipation for what's to come.