False Claims Landscape Could Change After Decision Drops

Defense attorneys are bracing for a Supreme Court ruling they resoundingly believe will give whistleblowers more time to act on behalf of the government and sue companies for allegedly defrauding federal programs.

The decision, due by the end of June, could lead to a swell in false claims cases, drive up settlement costs for companies accused of fraud, and encourage the government to ask for more cases to be dismissed, attorneys said in interviews. Others say it won’t have much of an impact at all.

The health-care industry plays an outsized role in such cases. It accounted for almost 90 ...