Anthrax Vaccine Manufacturer Wins 6th Circuit Ruling to Bar Parasitic Qui Tam Action
On October 28, 2004, the 6th Circuit Court of Appeals unanimously held for BioPort in a published opinion, dismissing Relators qui tam (whistleblower) False Claims Action (FCA) against the anthrax vaccine manufacturer. The Relators alleged that BioPort made false statements when it supplied the anthrax vaccine to the United States Government, but the Court dismissed their action for lack of jurisdiction.
The 6th Circuit recognized that Relators were prevented from bringing suit under the FCA' s public disclosure bar because the allegations were made public prior to the filing of their Complaint and they were not the original source of the information contained in the Complaint. The Court specifically held that several public documents (including news accounts; Congressional testimony; and GAO Reports), when taken in combination, disclosed the "allegations or transactions" that formed the basis of the Relators ' Complaint against BioPort, thereby invoking the public disclosure bar and thus, dismissed their action. This Opinion affirms the 6th Circuit's previous holdings that "parasitic qui tam actions" brought by Relators should not be allowed.
The 6th Circuit's recent opinion affirmed the earlier, published opinion in favor of BioPort from the United States District Court for the Western District of Michigan, Gordon J. Quist, J., that also dismissed Relators' claim against the anthrax vaccine manufacturer for lack of jurisdiction. See 270 F. Supp. 2d 968. This litigation represents the only qui tam action faced by a vaccine manufacturer.


