United States Ex Rel. Kolbeck v. Point Blank Solutions, Inc.

MEMORANDUM OPINION

T.S. ELLIS, III, District Judge.

This False Claims Act case presents the narrow question, unresolved in this circuit, whether a qui tam relator can proceed against a defendant in bankruptcy under the governmental police powers exception to the Bankruptcy Code’s automatic stay 1 where, as here, the United States has elected not to intervene in the action pursuant to 31 U.S.C. § 3730(b)(4)(B). For the reasons that follow, a qui tam FCA action in which the government has expressly declined to intervene is not “an action or proceeding by a governmental unit” so as to fall within…