The Stolen Valor Act was passed overwhelmingly by Congress in 2006, in response to an upward spiral in the number of cases where liars misrepresented military service - either service itself, or awards received during service. The practice of falsely hyping ones' war record has been around since the beginning of organized conflict. However, in recent times, high profile cases where people are trying to scam money or favor by claiming they are something they are not spurred action by Congress.
The Ninth US Circuit Court (the most liberal court in the land, located in San Francisco, of course) ruled that the law was unConstitutional. Somehow, in their twisted left wing sense they determined that lying was a form of free speech protected by the First Amendment. (Their decision, by the way, was 2-1, unusual because dissenting opinions rarely are produced by this radical activist bench). The Ninth then went on to block further judicial review by a broader group of judges. A survey of appelate judges that might have been asked to participate in that review showed that the vast majority of them would have sided with the law being Constitutional.
The Supreme Court has agreed to hear the case. That group almost always picks up cases that involve Constitutional isses regarding legistlation. Previous Supreme Court rulings indicate that it should side with the law being Constitutional. Watch for a 5-4 vote, right down liberal/conservative lines.
Obama's DoJ finds itself in the uncomfortable position of having to defend the law before the Court. For His flunkies to have to fight against the Ninth, bastion of liberal activism, must grate against their very core. One hopes they don't tank the case on purpose in order to support the Ninth.
I hope that the Supreme Court does rule in favor of the law. Scumbags who try to profit in any way, shape, or form by lying about military service and/or decorations deserve a special place in Hell.