After the seal lifts
Once unsealed, the complaint is served on the defendant and the case proceeds in federal district court. A defendant usually responds with a motion to dismiss, and these motions often focus on whether the complaint describes false claims with enough detail, whether the alleged violation was material to payment, and whether the suit is barred because it rests on public information or followed another relator's filing. In a declined case, the relator and the relator's counsel carry the cost and risk of litigation, while the government watches and can still weigh in. A qui tam suit generally cannot be voluntarily dismissed without the government's written consent, even when it declined to intervene, and the government usually has a say in any settlement.
Discovery and proof
If the case survives dismissal, discovery can be broad and costly: claims data, billing policies, internal audits, and the communications of many employees. Damages are often proved through statistical sampling of claims, and both sides typically retain witnesses on billing practices and damages calculations. The relator's own conduct and documents are also open to examination, which is why how the relator gathered materials matters. Retaliation claims, if any, belong to the relator personally and proceed alongside the main case. Throughout, the government may file statements of interest on legal questions that affect its programs.
Choosing a course
For relators, the key decisions after a decline are whether to continue, what resources the case will require, and whether the defendant is open to resolution. For defendants, the decisions are how hard to press dismissal, whether to approach the government about its position, and how the litigation might affect relationships with agencies the company still serves. At the outset we read the complaint, the government's notice of intervention or declination, and the court schedule, and set out what the next stage is likely to require. Neither side should assume that a quick settlement or a quick dismissal is available.
