Updates on Third Party Involvement in Litigation Funding for FCA Cases
High-ranking Department of Justice officials have raised concerns about the transparency of funding for qui tam litigation, which often comes from third parties, arguing that since these cases are brought in the name of the United States, the government has an interest in knowing who is behind them. For that reason, DOJ attorneys have been instructed to ask the whether the relator or his or her counsel has any agreement with a third-party funder. If the answer is yes, then the relator will be asked the following questions:
- The identity of the funder
- Whether the relator has shared information relating to the qui tam allegations with the funder
- Whether a written agreement exists
- Whether the agreement entitles the funder to exercise any direct or indirect control over the relator’s litigation or settlement decisions
