What If I Signed An NDA?

Kathleen Gallagher · September 29, 2025 · 3-min read

If you signed a non-disclosure agreement or a “general release,” that document typically cannot stop you from later bringing a False Claims Act whistleblower case when the United States did not yet know about your allegations at the time you signed the release or NDA. United States ex rel. Green v. Northrop Corp., 59 F.3d 953, 969 (9th Cir. 1995), cert. denied, 518 U.S. 1018 (1996).This rule exists to serve the public interest. Congress designed the False Claims Act to encourage insiders to report fraud, to supplement Government enforcement, and to protect the public’s stake in federal programs; enforcing private releases before the Government even learns of the misconduct would undermine those goals and risk harming the United States’ interests.

What do “releases” look like in practice? Some agreements are narrow (for example, waiving only False Claims Act claims); others are broad “general releases” that purport to waive “any and all” claims, often packaged with confidentiality and non-disparagement clauses in severance or settlement paperwork. Regardless of how the release is worded, a release signed while the United States is unaware of the alleged fraud cannot be used to shut down a later False Claims Act whistleblower case.

There is an important exception. If the Government already knew your allegations and finished its investigation before you signed, the Ninth Circuit has treated a release as valid against a later False Claims Act whistleblower lawsuit. United States ex rel. Hall v. Teledyne Wah Chang Albany, 104 F.3d 230, 231, 233 (9th Cir. 1997). In other words, the critical factor isn’t simply when you signed the release; it’s whether the United States already had the information and completed its work when you signed it. When the Government is already on notice and has investigated, the public policy rationale carries less weight because the Government has not been deprived of the information it needs to protect taxpayer funds.

Once a False Claims Act case is filed, it is the United States’ case, and it may be dismissed only if both the court and the Attorney General give written consent and state their reasons. That means a private post-filing release cannot on its own dispose of False Claims Act claims; DOJ and the court must sign off to protect the Government’s interests.

• Don’t assume you’re barred. If the United States first learned of the fraud through your later court filing, a release you signed earlier generally cannot be used to stop your case.
• Timing matters. If the Government already knew of your allegations and finished investigating before you signed a release, a court may treat your release as effective, so strategy should account for that risk.
• Post-filing deals aren’t self-executing. After a qui tam is filed, any release or attempted dismissal requires DOJ and court consent; private agreements are not enough. 31 U.S.C. § 3730(b)(1).
• Talk to counsel early. Small differences in sequence – what you told the Government and when, when any investigation concluded, and when you signed – can decide enforceability of your NDA or release. Contact Gallagher & Lipshutz. Our False Claims Act team can help evaluate your case and map the right path forward.

This post is general information, not legal advice. For guidance on your specific facts, consult experienced False Claims Act counsel.