In JKJ Partnership 2011 v. Sanofi-Aventis US, No. 256, 2019, slip op. (Del. Mar. 17, 2020), the Delaware Supreme Court, answering certified questions from the U.S. Court of Appeals for the Third Circuit, held that when a partnership replaced one of its original three partners with a new partner, the partnership dissolved. As a result, the partnership may have lost the ability to fulfill its essential purpose—the pursuit of a qui tam action.

Three individuals (A, B and C) were whistleblowers who alleged that several drug companies had marketed a product without sufficiently warning the public of potentially harmful effects. To protect their anonymity, the individuals formed a partnership (original partnership). The original partnership filed a qui tam action against several drug companies. Post-filing, Partner A left the partnership. Partner G joined the partnership. The “partnership” filed an amended complaint in the qui tam action.

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