In an important development regarding the False Claims Act (FCA), the 10th U.S. Circuit Court of Appeals recently upheld a district court’s decision after a jury verdict was in favor of an employee. The court found that Parker-Migliorini International (PMI) had violated the FCA by retaliating against an employee named Brandon Barrick who had engaged in a protected activity under the FCA.
After his dismissal from the company in April 2012, Barrick filed a qui tam action against PMI in the U.S. District Court for the District of Utah. He alleged PMI violated the FCA and unlawfully retaliated against him.
The jury in the trial agreed with Barrick’s claim. They concluded that PMI had indeed violated the FCA by terminating his employment as an act of retaliation against Barrick’s engagement in a protected activity under the FCA. The court’s opinion confirms this situation.
Of particular note was a statement from Judge Paul J. Kelly, Jr., who asserted that an employee’s activity does not have to lead to a viable qui tam claim under the FCA. He further clarified that no specific ‘magic words’, such as ‘FCA violation’ or ‘fraudulent report to the government to avoid payment’, are required to put an employer like PMI on notice.
This decision may therefore help define standards under the False Claims Act, specifically in relation to protected whistleblowing activities. It stands as a significant reinforcement of whistleblower protections under federal law.
To read the full details of this case, you can access the original reporting here.