Lawyer-Whistleblowers, the False Claims Act & Confidentiality

Lawyer-Whistleblowers, the False Claims Act and

Confidentiality

Kathleen Clark

ABA Center for Professional ResponsibilityJune 2, 2016

False Claims Act cases

sound in

fraud

heightened pleading

requirements Fed. R. Civ. Proc. 9(b)

organizational insiders

confidentiality

contract fiduciary

professional rules

Defendants

counterclaimspreemptive suits

disqualification motions

Relators

preemptionpublic interest exception

scope of

exception

documentsnot

relevantto

fraud

may disclose

fraud

lawyer-relators

6 FCA cases

lawyer-relatorssuing

clients

6 losses

for lawyer-relators

2lost on

non-ethics grounds

4lost on

confidentiality

US ex rel Doe v

X CorpE.D. Va. 1994

Virginia Code Prof. Resp.:

only if evidence

clearly establishes fraud

Bury v

Community Hospitals of Central California

CA 2002

California:to prevent crimeslikely to result in

death or subst. bodily injury

US ex rel FLPAv

Quest2nd Cir 2013

NY ex rel Danonv

VanguardNY SCt 2015

New York:reasonably

believes necessaryto prevent

crime

Model Rule 1.6(b)(3)to

prevent / mitigate /rectify

client fraud

lawyer-relatorsuing

non-client

US ex rel Holmesv

Northrop Grumman5th Cir 2016

Mississippi / DC / ModelRules

State variations

crime / fraudnon-monetary crime

prevent / rectify

Lawyer-Whistleblowers, the False Claims Act and

Confidentiality

Kathleen Clark kathleen_clark@mac.com

ABA Center for Professional ResponsibilityJune 1, 2016