Standard Chartered Waives Right to Respond to SCOTUS Petition in FCA Suit on Sanctions Violations

British financial giant Standard Chartered Bank waived its right to respond to a petition for writ of certiorari at the U.S. Supreme Court in a False Claims Act case brought by whistleblower Brutus Trading. Standard Chartered said it doesn't intend to file a response unless prompted by the court (Brutus Trading v. Standard Chartered, Sup. Ct. # 23-813).

The FCA case stems from Brutus' efforts to alert the U.S. government of alleged violations by Standard Chartered and its affiliates of U.S. sanctions on Iran. The U.S. voluntarily dismissed the proceeding, even though it didn't initially intervene in the case and only later appeared only for the purpose of requesting dismissal.

Brutus petitioned the high court to review the dismissal, so the court can clear up its own 2023 ruling that the U.S. can voluntarily dismiss a qui tam FCA case after not initially intervening in the action, and that the dismissal would be carried out under Rule 41(a) (see 2401310078). Brutus argued that the dismissal process under Rule 41(a), under which the court has no "adjudicatory role," clashes with the statutory requirement under the FCA to give the whistleblower an opportunity for a hearing.