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AnalysisFalse Claims ActAppellate Ruling· 3 min read· in Law & Justice

Eleventh Circuit Rejects Appointments Clause Challenge to False Claims Act Whistleblower Provision

A federal appeals court ruled that private citizens bringing fraud claims on behalf of the U.S. government are not constitutional officers, preserving the False Claims Act's primary enforcement mechanism.

By Mariana Costa

Corporate Defense Counsel 80%Editorial Synthesis 20%
Corporate Defense Counsel
Focuses on the structural separation of powers and the burden of defending against privately initiated federal lawsuits.
Editorial Synthesis
Provides neutral structural analysis of the appellate ruling and its implications for federal enforcement.

Perspectives this story doesn't cover

  • Department of Justice Officials
  • Whistleblower Advocacy Groups

Why it matters

The False Claims Act's whistleblower mechanism is the federal government's primary tool for recovering defrauded taxpayer funds, driving billions of dollars in settlements annually. By upholding the provision, the court preserves a system that heavily regulates healthcare, defense, and cybersecurity contractors.

The binding constraint for a private citizen to prosecute a civil lawsuit on behalf of the United States is whether they are acting as an "Officer of the United States" under Article II of the Constitution. On September 1, 2026, the U.S. Court of Appeals for the Eleventh Circuit ruled that they are not, preserving a mechanism that drives the majority of federal fraud recoveries.[1]

In a unanimous decision, the appellate panel vacated a 2024 ruling by U.S. District Judge Kathryn Kimball Mizelle in United States ex rel. Zafirov v. Florida Medical Associates, LLC. The lower court had dismissed the case, concluding that the False Claims Act's qui tam provision violated the Appointments Clause because whistleblowers—known as relators—wielded significant executive authority without presidential appointment.[2][5]

The Eleventh Circuit reversed that finding by applying the Supreme Court's two-part test from Lucia v. SEC. The panel determined that relators do not occupy a "continuing position established by law."[5][6]

Because a relator's role is temporary and personal to a specific lawsuit, terminating when that specific litigation concludes, the court held that the position lacks the permanence required to classify the individual as a constitutional officer. Having failed the first prong of the Lucia test, the court concluded it did not need to address the second prong regarding whether relators exercise "significant authority."[1][5]

The ruling maintains the status quo for a statute that serves as the Department of Justice's primary anti-fraud enforcement tool. In 2025, False Claims Act recoveries reached a record $6.8 billion, driven by an all-time high of nearly 1,300 qui tam filings across the healthcare, defense, and cybersecurity sectors.[5]

False Claims Act enforcement reached record highs in 2025, driven largely by qui tam whistleblower filings.
The ruling maintains the status quo for a statute that serves as the Department of Justice's primary anti-fraud enforcement tool.

By upholding the provision, the Eleventh Circuit joins the Fifth, Sixth, Ninth, and Tenth Circuits, maintaining an unbroken appellate consensus. This alignment avoids a circuit split, which reduces the immediate likelihood that the Supreme Court will grant certiorari to review the Appointments Clause question.[2][6]

The recent wave of constitutional scrutiny stems from a 2023 Supreme Court case, United States ex rel. Polansky v. Executive Health Resources. In a dissenting opinion, Justice Clarence Thomas—joined by Justices Brett Kavanaugh and Amy Coney Barrett—invited challenges to the qui tam mechanism, suggesting there were substantial arguments that it violates Article II.[1][6]

While the Eleventh Circuit resolved the Appointments Clause question, the constitutional debate remains active. The appellate court remanded the Zafirov case back to the Middle District of Florida to consider the defendants' remaining constitutional challenges.[1][2]

The case returns to the Middle District of Florida to evaluate remaining constitutional challenges.

On remand, the district court will evaluate whether the qui tam provision violates the Take Care Clause or the Vesting Clause of Article II. Defendants argue that the statute improperly allows private individuals to initiate and control federal enforcement actions without adequate oversight by the executive branch.[5][6]

What to know

  • The Eleventh Circuit ruled that False Claims Act whistleblowers are not 'Officers of the United States' under the Appointments Clause.
  • The decision reverses a 2024 district court ruling that had struck down the statute's qui tam provision.
  • The court found that relators do not hold a 'continuing position established by law' because their role ends with their specific lawsuit.
  • The case was remanded for the lower court to consider remaining challenges under the Take Care and Vesting Clauses.

Where opinion splits

Corporate Defense Counsel

Defense attorneys argue the qui tam provision unconstitutionally delegates executive power to private citizens.

Attorneys representing healthcare and defense contractors maintain that the False Claims Act allows private relators to wield unchecked executive power. By initiating and controlling litigation on behalf of the United States, they argue, these individuals bypass the President's constitutional duty to enforce the law under the Take Care and Vesting Clauses. They view the Eleventh Circuit's remand as a critical opportunity to test these remaining Article II arguments.

Whistleblower Advocates

Advocates argue the mechanism is historically grounded and essential for federal fraud recovery.

Supporters of the qui tam provision emphasize its historical roots, noting that similar mechanisms have existed since the founding of the republic. They argue that the government lacks the resources to independently detect and prosecute complex, large-scale fraud across sprawling industries like healthcare and defense. From this perspective, private relators are an indispensable force multiplier that returns billions to the Treasury annually.

Sources

Source coverage

7 outlets

2 viewpoints surfaced

Corporate Defense Counsel 80%Editorial Synthesis 20%
  1. [1]Ropes & Gray LLPCorporate Defense Counsel

    Eleventh Circuit Upholds Constitutionality of FCA's Qui Tam Provisions, Allowing Whistleblower Suits to Continue

    Read on Ropes & Gray LLP
  2. [2]Akin GumpCorporate Defense Counsel

    Eleventh Circuit Rejects Appointments Clause Challenge to False Claims Act Qui Tam Provisions and Remands for Consideration of Other Constitutional Challenges

    Read on Akin Gump
  3. [3]SidleyCorporate Defense Counsel

    Eleventh Circuit Rejects Appointments Clause Challenge to Qui Tam Mechanism

    Read on Sidley
  4. [4]Sheppard MullinCorporate Defense Counsel

    Eleventh Circuit Upholds Constitutionality of the False Claims Act's Qui Tam Provision and Reverses Lower Court

    Read on Sheppard Mullin
  5. [5]Mayer BrownCorporate Defense Counsel

    Eleventh Circuit Rejects Appointments Clause Challenge to False Claims Act Qui Tam Provisions

    Read on Mayer Brown
  6. [6]MintzCorporate Defense Counsel

    Eleventh Circuit Rejects Appointments Clause Challenge to False Claims Act Qui Tam Provisions

    Read on Mintz
  7. [7]Factlen Editorial TeamEditorial Synthesis

    Synthesis by Factlen editorial team

    Read on Factlen Editorial Team

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