High court restricts whistleblower lawsuits

WASHINGTON (AP) - The Supreme Court has placed new limits on whistleblower lawsuits claiming that local governments misused federal money.

The court, in a 7-2 vote Tuesday, said that a technical, though important aspect of the federal False Claims Act applies to local governments. One section of the law prohibits whistleblower lawsuits when public disclosure of the alleged fraud occurs through a court hearing, a news report or congressional or administrative audit.

In an opinion by Justice John Paul Stevens, the court ruled that the language on administrative audits refers to a report prepared by any government, not just a federal government document. The question had divided federal appeals courts.