Fraud Whistleblowers Face Big Split Over Race to Courthouse Rule

A recent federal appeals court ruling flipping a $34 million award from one whistleblower to another highlights what can be at stake under the False Claims Act’s first-to-file rule.

It also shows how important it is for courts to know what evidence they may review when weighing who filed the first suit under the federal fraud law.

The rule incentivizes whistleblowers to race their claims to the courthouse because it bars those filing their complaints second, third, or even fourth, from accusing a company of defrauding the government.

The award switched hands in the U.S. Court of Appeals for the ...