Lawsuit abuse across the U.S. results in more than $160 billion in excessive tort costs
State Farm Fire & Casualty Co. v. United States ex rel. Rigsby No. 15-513
(U.S., filed August 8, 2016): Arguing that the blatant violation of the “seal” requirement by relator in a false claims case should result in a dismissal of the suit. ATRA filed a cert petition in this matter in 2015. Oral argument to be held in the coming term of the Supreme Court of the United States.
The Court ruled against ATRA’s position on December 6, 2016. Justice Kennedy held that automatic dismissal is not required for a seal violation. He also stated that whether dismissal is appropriate is an issue left in the sound discretion of the district court, and that the Court could explore the factors relevant to the exercise of that discretion in later cases.
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