Utah Lenders Agree to Multi-Million Dollar False Claims Act Settlements

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The DOJ announced earlier this month that a pair of Utah-based mortgage companies–Primary Residential Mortgage Inc. and Security National Mortgage Company–agreed to settlements of $5 million and $4.25 million, respectively, to settle separate false claims act suits relating to their originating and underwriting of mortgage loans insured by the U.S. Department of Housing and Urban Development’s [...]

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Can A Bad Patent = False Claims Act Violation?

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Hat tip to my favorite patent law blog, Patently-O, for unearthing this truly creative–and probably doomed-to-fail–use of the False Claims Act. In United States ex rel. Lower Drug Prices for Consumers (LDPFC) v. Allergan and Forest Labs., Case No. 16-cv-09 (E.D.Tex. 2016), the relator is alleging that the price of a particular drug is higher than it should be due [...]

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4th Circuit: Violation of False Claims Act’s Seal Provision Does Not Require Dismissal

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In an issue of first impression for the Fourth Circuit Court of Appeals, the court was confronted with the question of the appropriate remedy for a relator’s violations of the automatic seal provision of the False Claims Act. In Smith v. Clark/Smoot/Russell, 796 F.3d 424, 429 (4th Cir. 2015), the relator’s counsel, after filing the FCA complaint [...]

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Defend Trade Secrets Act + Uniform Trade Secrets Act = Potent Defense for Whistleblowers

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Courts have reached nuanced decisions on the question of whether a whistleblower who takes protected employer documents can face liability under confidentiality agreements or common-law theories, like trade secret misappropriation, conversion, or breach of the loyalty duty. Courts have generally rejected attempts to prevent whistleblower suits, including under the False Claims Act, based on such [...]

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