On May 5, 2023, the Securities and Exchange Commission (“SEC”) announced that it had awarded a single whistleblower $279 million. This is the largest award made under the SEC’s Whistleblower Program by a long shot – more than double the now-second highest award, which stands at $114 million.
After a rare False Claims Act (FCA) trial, a St. Paul federal jury has returned a verdict for the government in United States, ex rel. Kipp Fesenmaier v. Cameron-Ehlen Group, Inc., No. 0:13-cv-03003 (D. Minn.).
The jury found that ophthalmic products supplier, Cameron-Ehlen Group, Inc.
Takeaways:
During the holidays,
It’s not always sunny for everyone on the Florida beaches. On January 30, 2023, the United States Attorney’s Office for the Middle District of Florida announced that Al Clint LaRoche of West Palm Beach pleaded guilty to two counts of bank fraud involving more than $1 million from the Paycheck Protection Program (PPP) loan program.
On November 30, 2022, the United States Court of Appeals for the Third Circuit revived a quality control manager’s FCA retaliation claim in United States ex rel. Ascolese v. Shoemaker Constr. Co., — F.4th —, 2022 WL 17335121 (3d Cir. 2022).
The Third Circuit’s precedential opinion addressed for the first time how Congress’s 2009 and 2010 amendments affect the False Claims Act’s retaliation standard.
Takeaway: The Eastern District of New York rules that the tax code gives relator’s counsel superpriority to False Claims settlement proceeds.
The United States government has four primary whistleblower statutes and reward programs:
All of these whistleblower programs are quite democratic.
Takeaway: Recent qui tam settlement highlights the DOJ’s continued focus on fraud and abuse in the diagnostics industry and robust enforcement of the Anti-Kickback Statute.
Earlier this month, Snap Diagnostics LLC and two of its executives entered into a nearly $4 million settlement with the United States to settle two qui tam lawsuits.
Takeaway: California has recovered over $2 billion under the State’s False Claims Act since 2001, according to data obtained from the State Attorney General’s Office.
Enacted in 1987, the California False Claims Act (“CAFCA”) is one of the oldest qui tam statutes in the country.
Takeaway: 6th Circuit provided a path forward for a common defense contracting fraud allegation.
In United States ex rel. USN4U, LLC v. Wolf Creek Federal Services[1] the 6th Circuit overturned the lower courts dismissal of a qui tam complaint that alleged a NASA contractor knowingly inflated the prices of its labor costs in Cost Estimates for fixed price contracts.
If you are aware of any person, corporation or entity that you think may be violating the Federal False Claims Act or a State False Claims Act, contact us today.