Second Circuit rules that relevant government “payment decision” under Escobar included Veterans Administration’s initial decision to award contracts based on claim that contractor qualified as a “service-disabled, veteran-owned small business”—not just the VA’s subsequent decisions to make payments under those contracts In a key victory for the federal government and…
Fourth Circuit reasons that proving the fraudulent state of mind required for False Claims Act liability would defeat any claim of qualified immunity State or local government officials alleged to have violated the False Claims Act by defrauding the federal government cannot raise “qualified immunity” as a defense, the Fourth…
Linde AG used incorrect Harmonized Tariff Schedule (HTS) codes and failed to declare “assists” on steel products imported from China The German firm Linde AG has agreed to pay $22.2 million to resolve allegations it knowingly dodged U.S. customs duties on imports of steel components from China. The qui tam…
Fraud in connection with receipt of federal bailout funds held to be actionable under the False Claims Act The Second Circuit Court of Appeals has ruled in favor of two financial sector qui tam whistleblowers, reviving their claims under the False Claims Act that Wells Fargo lied about its financial…
Centric Parts of California evaded 2.5% tariff by misclassifying “mounted” brake pads as “unmounted.” In yet another False Claims Act settlement involving customs fraud and tariff enforcement, California aftermarket auto parts supplier CWD Holdings, LLC – which does business as Centric Parts – has agreed to pay $8 million to…
Firm allegedly provided government with inaccurate cost data during contract negotiations, failed to disclose that estimates had been reduced by automation of manual tasks. Federal prosecutors have announced that CDM Smith, an environmental engineering and construction firm located in Fairfax, Virginia, has agreed to pay $5.6 million to resolve claims…
Management pressured staff to inflate Medicare reimbursements by “upcoding” and “ramping.” The Seventh Circuit Court of Appeals has held that arrangements with a third-party litigation funder did not deprive a whistleblower of legal “standing” to pursue her claims under the False Claims Act. It also upheld a $255 million jury…
Former employee blows the whistle, receives reward In another False Claims Act settlement involving trade fraud, the owner of New York jewelry wholesaler Anaya Gems Inc. has agreed to pay $415,000 to resolve allegations relating to import duty evasion. The former employee who blew the whistle on the scheme by…
Downstream wholesaler allegedly turned a blind eye to suppliers’ import fraud while receiving goods at below-market prices. Whistleblowers reap rewards. The increased use of the False Claims Act to combat duty evasion has alarmed importers — as it well should! Liability under the False Claims Act can be significant —…
Court says that disputed medical judgments present a triable issue for a jury, creating a Circuit split and paving the way for similar whistleblower claims. The Third Circuit Court of Appeals has ruled that a physician’s judgments and opinions can be considered “false” under the False Claims Act, rejecting the…