US ex rel. Sargent v. Collins

CourtCourt of Appeals for the First Circuit
DecidedJanuary 22, 2026
Docket25-1153
StatusPublished

This text of US ex rel. Sargent v. Collins (US ex rel. Sargent v. Collins) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
US ex rel. Sargent v. Collins, (1st Cir. 2026).

Opinion

United States Court of Appeals For the First Circuit

No. 25-1153

UNITED STATES, ex rel. ERIK K. SARGENT,

Plaintiff, Appellant,

UNITED STATES, ex rel.,

Plaintiff,

v.

DOUGLAS A. COLLINS, in his official capacity as Secretary of the Department of Veterans Affairs,

Defendant, Appellee,

TRACYE B. DAVIS; TODD STAPLEY,

Defendants.

APPEAL FROM THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MAINE

[Hon. Stacey D. Neumann, U.S. District Judge]

Before

Gelpí, Rikelman, and Dunlap, Circuit Judges.

Cynthia A. Dill on brief for appellant.

Brett A. Shumate, Assistant Attorney General, Craig M. Wolff, Acting United States Attorney, and Michael S. Raab, Charles W. Scarborough, and Maxwell A. Baldi, Attorneys, Appellate Staff, Civil Division, U.S. Department of Justice, on brief for appellees. January 22, 2026 DUNLAP, Circuit Judge. Plaintiff-Appellant Erik K.

Sargent appeals from the district court's dismissal of his

retaliation claim under the False Claims Act ("FCA"), 31 U.S.C.

§ 3730(h), for lack of subject-matter jurisdiction. Mr. Sargent,

a federal employee, sued the Secretary of the Department of

Veterans Affairs (the "Secretary") in his official capacity.1

Mr. Sargent alleged that he had suffered on-the-job retaliation at

Veterans Affairs Maine Healthcare System after refusing to

cooperate with fraudulent acts by his supervisors and reporting

those acts. The district court determined, sua sponte, that

Congress had not expressly waived federal sovereign immunity for

retaliation claims under Section 3730(h), and so "the FCA d[id]

not authorize [Mr. Sargent] to pursue his FCA-derived retaliation

claim against the United States." United States ex rel. Sargent

v. McDonough, No. 1:23-cv-00328-SDN, 2024 WL 5159170, at *2 (D. Me.

Dec. 18, 2024). The court thus granted the motion to dismiss.

Id. at *4. Upon review, we affirm the district court's judgment

and hold that federal sovereign immunity bars Mr. Sargent's

retaliation claim under 31 U.S.C. § 3730(h).

1 Mr. Sargent's amended complaint named as a defendant Denis R. McDonough, in his official capacity as the Secretary, but Douglas A. Collins has since assumed the role.

- 3 - I.

When reviewing a district court's grant of a motion to

dismiss, we accept the amended complaint's well-pleaded factual

allegations as true. Better Way Ford, LLC v. Ford Motor Co., 142

F.4th 67, 77 (1st Cir. 2025). We also "draw all reasonable

inferences in favor of the non-moving party." Id. (quoting Cheng

v. Neumann, 51 F.4th 438, 443 (1st Cir. 2022)). "We do

not . . . credit legal labels or conclusory statements, but rather

focus on the complaint's non-conclusory, non-speculative factual

allegations and ask whether they plausibly narrate a claim for

relief." Id. (quoting Cheng, 51 F.4th at 443). Applying this

familiar standard, we draw the facts summarized below from the

amended complaint.

A. Relevant Facts

Mr. Sargent worked for the Veterans Affairs Maine

Healthcare System ("VA Maine"), a local organization of the

Veterans Health Administration, which is in turn an agency of the

U.S. Department of Veterans Affairs. One of his responsibilities

was to approve overtime worked by a family nurse practitioner who

performed physical-therapy consults. In August 2021, Mr. Sargent

learned that the nurse practitioner had reached her overtime cap

for the year and was not eligible for any further overtime unless

it was COVID-related -- which the consults were not. Around two

months later, Mr. Sargent learned the nurse practitioner had not

- 4 - been logging on to her computer when she claimed to be performing

overtime consults, indicating she had not actually worked

overtime.

Knowing these facts, Mr. Sargent's

supervisors -- Tracye Davis (the Medical Center Director) and Todd

Stapley (the VA Maine Chief of Staff) -- allegedly created and

signed a false waiver indicating that the nurse practitioner had

worked overtime that was mission essential to COVID, when she had

not. This waiver resulted in a payment of approximately $95,000

in unearned overtime compensation, according to Mr. Sargent.

Mr. Sargent alleges that he refused to sign the waiver to override

the overtime cap and falsely state that the nurse practitioner's

overtime claims should be coded as COVID-related. When he

subsequently disclosed what he believed was a violation of the

law, gross mismanagement of funds and abuse of authority to the VA

Office of Inspector General, his employer and supervisors

allegedly targeted him with a campaign of harassment and

discrimination in retaliation, which included a reprimand and

demotion.

B. Procedural History

Mr. Sargent brought a qui tam action in the federal

district court for the District of Maine. On behalf of the United

States, he accused his direct supervisors, Ms. Davis and

Mr. Stapley, of submitting a false claim and conspiring to commit

- 5 - a violation of the FCA, 31 U.S.C. § 3729(a)(1)(A)-(C). On his own

behalf, he alleged that unspecified "defendants" -- presumably,

Ms. Davis, Mr. Stapley, and the Secretary (in his official

capacity) -- had retaliated against him in violation of 31 U.S.C.

§ 3730(h). The government intervened and moved to dismiss the

false claim and conspiracy count against Ms. Davis and

Mr. Stapley, and the district court granted that motion to dismiss.

United States ex rel. Sargent v. McDonough, No. 1:23-cv-00328-LEW,

2024 WL 809902, at *2 (D. Me. Feb. 26, 2024).2

Subsequently, the government moved to dismiss the

remaining retaliation count. The government argued that the court

lacked subject-matter jurisdiction because Mr. Sargent, as a

federal employee, had not availed himself of the exclusive remedies

for retaliatory personnel decisions prescribed in the

Whistleblower Protection Act ("WPA"), 5 U.S.C. §§ 1214, 1221,

2302(b)(8)-(9), and so could not pursue an FCA-based retaliation

claim. United States ex. rel. Sargent v. McDonough,

No. 1:23-cv-00328-SDN, Dkt. No. 12 at 4-6 (Mot. Dismiss). On

December 18, 2024, the district court dismissed the retaliation

2Because qui tam actions are brought in the name of the United States, the government "may dismiss the action notwithstanding the objections of" the relator as long as the relator "has been notified by the [g]overnment of the filing of the motion and the court has provided the [relator] with an opportunity for a hearing on the motion." 31 U.S.C. § 3730(c)(2)(A).

- 6 - count, but primarily on a basis different than that briefed by the

government.

On its own initiative, the district court determined

that because "a judgment against the Secretary [in his official

capacity] 'would expend itself on the public treasury or domain,'"

Mr. Sargent's suit amounted to "one against the sovereign -- the

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