The issue of settling claims in a non-intervened qui tam case under the Virginia Fraud Against Taxpayer’s Act presents the same sort of thorny issues as settlement in a Federal False Claims Act case. Most of the differences between settling a false claims case and a typical civil case arise out of the fact that the Commonwealth (or the Department of Justice in a federal case) must approve the settlement in all respects.
In reviewing and approving settlement agreements, the Commonwealth will and should act to protect its interests in a number of ways, many of which might not be apparent on the face of the statute.
An excellent memo from the Department of Justice’s Commercial Litigation Branch is a must-read for anyone interested in the VFATA. The Cook & Kitts, PLLC