Gilead Suit Tests Government’s Authority to Dismiss Fraud Cases

The Justice Department is attempting to dismiss a case against Gilead Sciences, Inc., in which whistleblowers accuse the company of using contaminated pharmaceutical ingredients from China in some of its HIV drugs.

The case—U.S. ex rel. Campie v. Gilead—will be a test of the DOJ’s authority to dismiss fraud cases brought by whistleblowers on behalf of the government under the False Claims Act.

The government made the unusual move to dismiss the case in April, stating that it would be a costly burden on the DOJ, according to court documents. At the request of the judge, it filed ...