Whistleblower Suits Barred by Constitution, Judge Rules Again

Whistleblowers’ False Claims Act suit against Native American Services Corp. and Great American Insurance Group Inc. alleging small business contract fraud is unconstitutional, a federal judge said for a second time.

The FCA’s whistleblower provisions violate the appointments clause, Judge Kathryn Kimball Mizelle of the US District Court for the Middle District of Florida said in a Thursday order granting the defendants’ motion for judgment on the pleadings and dismissing the nine-year suit with prejudice.

A whistleblower “undeniably asserts core executive power by prosecuting claims on behalf of the United States,” the court said. Whistleblowers are US officers, and they ...