State Administrative Audit is a Source of Public Disclosure Precluding Qui Tam

Charlotte Bly-Magree filed a qui tam action under the False Claims Act, 31 U.S.C. ? 3729, against the California Department of Rehabilitation (CDR) for defrauding the federal government. The trial court dismissed her action on the ground that she was not the original source of the allegations, which is a jurisdictional requirement, but that instead they were publicly disclosed by a state agency in a published audit report. In a case of first impression, the court agreed, holding that ?an administrative report, audit, or investigation prepared by a state entity (as opposed to the federal ?government) ?qualifies? as? a ?source ?of public? disclosure?? precluding? a? private? party from subsequently filing a qui tam action as the original ?source. ?Bly-Magee ?v. ?Premo, ?No. ?05- 55556 (12/13/06, Canby, Noonan, Berzon).