The 10th Circuit Court of Appeals dismissed for-profit college Colorado Technical University’s (“CTU”) appeal of the district court’s denial of its motion to dismiss, holding that CTU failed to meet the high burden required to expand the collateral order doctrine to include the False Claims Act’s public disclosure bar.

This case alleges CTU fraudulently misrepresented compliance with federal credit hour requirements to receive student aid. CTU moved to dismiss the case based on the public disclosure bar, which generally prohibits qui tam lawsuits if the core allegations were publicly disclosed before the case was filed, unless the relator qualifies as an original source under the statute. The district court denied CTU’s motion to dismiss last year, and CTU appealed to the 10th Circuit.

In its ruling, the 10th Circuit rejected CTU’s argument that the public disclosure bar functions as a right to avoid trial, holding that it is a procedural defense, not a form of immunity. The court also emphasized the importance of judicial efficiency, warning against piecemeal appeals that undermine the final judgment rule. Additionally, it dismissed CTU’s separation of powers claims, noting that Congress removed jurisdictional language from the FCA’s public disclosure provision in 2010.

This decision is an important reaffirmation of limits on interlocutory appeals in FCA cases, preventing unnecessary delays and ensuring that whistleblower litigation proceeds as intended.

Constantine Cannon represents the whistleblower in this case. Marlene Koury commented, “We are pleased with the court’s decision, and we look forward to continuing to litigate this important False Claims Act case.”

Read 10th Circuit Rejects Expansion of Collateral Order Doctrine for Public Disclosure Bar at constantinecannon.com