Ninth Circuit rejects heightened notice requirement for compliance officers in FCA retaliation claims: Mooney v. Fife

In Mooney v. Fife, (9th Cir.)           F.3d           (Oct. 1, 2024), the Court of Appeals for the Ninth Circuit held that the McDonnell Douglas framework and Moore test apply to False Claims Act (FCA) retaliation claims, rejecting a heightened standard of notice for employees with compliance duties.

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Plaintiff, a COO, reported potential FCA violations to his employer. He was later terminated for allegedly disclosing confidential information unrelated to those violations. He sued for FCA retaliation, breach of contract, and breach of implied covenant. The district court granted summary judgment for defendant on all claims, and plaintiff appealed.

On appeal, the Ninth Circuit reversed and remanded the FCA retaliation claim. It applied the McDonnell Douglas rather than Mt. Healthy framework, following sister circuits and Stilwell v. City of Williams (9th Cir. 2016) 831 F.3d 1234. It also applied the Moore test but not the Hopper investigating requirement, finding Plaintiff engaged in protected activity. The court rejected a heightened notice standard for compliance officers, finding that Plaintiff satisfied the FCA’s notice requirement. The Ninth Circuit also reversed and remanded the breach of contract and implied covenant claims, finding the district court failed to view the evidence in the light most favorable to Plaintiff.

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