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Fifth Circuit Finds Government Knowledge Defense Not Appropriate On Motion To Dismiss

Posted  01/8/15
By the C|C Whistleblower Lawyer Team Under the so-called "government knowledge" defense, the government's awareness of a fraud can defeat False Claims Act liability on the ground the defendant did not "knowingly" defraud the government since the government acted with full information.  It is not a statutory defense but merely a way for a defendant to rebut the intent (or scienter) element of a False Claims Act...

Sixth Circuit Finds Job Applicants Not Covered By FCA Whistleblower Retaliation Provisions

Posted  12/4/14
By the C|C Whistleblower Lawyer Team The whistleblower retaliation provisions of the False Claims Act offer broad relief to "employees" who are terminated, suspended, harassed or otherwise discriminated against by their employers for engaging in protected whistleblowing activity.  Congress amended the statute in 2009 to expand these provisions beyond employees to also reach "contractors" and "agents" of a...

Court Approves Statistical Sampling in False Claims Act Cases

Posted  10/16/14
By Jason Enzler A district court has upheld the use of statistical sampling in a False Claims Act case. As the court discussed in its decision, the use of sampling in False Claims Act litigation is not new. But it generally has been limited to establishing damages or to cases where the use of sampling is not contested. In United States ex rel. Martin v. Life Care Centers of America, Inc., however, the court...

D.C. Circuit Opines on What Constitutes Knowledge of Falsity Under the False Claims Act

Posted  09/11/14
By Jason Enzler The Court of Appeals for the District of Columbia Circuit issued an opinion recently affirming a trial court’s grant of summary judgment against a qui tam relator.  The ruling in U.S. ex rel. Folliard v. Government Acquisitions, Inc. dealt with two issues: whether the lower court properly denied discovery of certain information and whether the defendant had “knowingly” submitted false claims...

Case Tests Tension Between False Claims Act and First Amendment

Posted  09/4/14
By Marlene Koury The much claimed but never proven tension between the False Claims Act (“FCA”) and First Amendment is being tested again in United States v. Millenium Pharmaceuticals Inc., currently pending in the Eastern District of California.  The whistleblower, a former pharmaceutical sales representative, alleges in his complaint that Millennium Pharmaceuticals illegally promoted the off-label use of...

Barker Decision Extends Attorney-Client Privilege Waiver to False Claims Act Cases

Posted  09/4/14
The attorney-client privilege is perhaps the most critical component of the attorney-client relationship.  As the Supreme Court declared in its landmark Upjohn decision, the privilege exists "to encourage full and frank communication between attorneys and their clients and thereby promote broader public interests in the observation of law and administration of justice."  As most would agree, without the privilege...

Party in the (Wall) Street?

Posted  06/5/14

By Jason Enzler

The Second Circuit Court of Appeals has overturned a decision that many had hailed as one of the first to really hold Wall Street accountable for its behavior in the years leading up to the Great Recession.  The opinion, issued yesterday, found that New York District Court Judge Jed Rakoff abused his discretion in rejecting a deal brokered between the Securities and Exchange Commission and Citigroup,...

Eighth Circuit Takes Broad View of Whistleblower “Finder's Fee”

Posted  04/17/14
By the C|C Whistleblower Lawyer Team Under the qui tam provisions of the False Claims Act, a whistleblower who files an action that ultimately leads to a government recovery is entitled to a generous portion of the proceeds -- anywhere from 15 to 30 percent.  There is no discretion in making an award.  It is mandated by statute.  It is this unadulterated promise of a significant financial bounty that has been a...

Supreme Court Rules State AG Suits Free from CAFA Restraints

Posted  01/16/14
Whistleblower_resourcesBy the C|C Whistleblower Lawyer Team The Supreme Court ruled on Tuesday, in a unanimous decision authored by Justice Sonia Sotomayor, that the Class Action Fairness Act (CAFA) does not apply to so-called parens patriae actions.  These are lawsuits filed by state attorneys general to recover damages on behalf of their residents for corporate misconduct.  The decision, Mississippi v. AU Optronics Corp., is notable...

Judge Posner Strikes a Small Win for Class Actions

Posted  12/4/13
By Jason Enzler Earlier this week a panel of the Seventh Circuit Court of Appeals, led by legal luminary Judge Richard Posner, took the relatively rare step of reversing a district court’s denial of a motion for class certification.  The opinion in Phillips v. Asset Acceptance, LLC rejected the lower court’s ruling that would have limited the reach of the Fair Debt Collection Practices Act and narrowly...