The Second Circuit recently added to case law addressing the issue of whether a relator’s release of False Claims Act (FCA) claims prior to the relator’s qui tam action is enforceable. United States ex rel. Ladas v. Exelis, Inc. The circuit reversed the district court’s holding that the release was enforceable, disagreeing with the court’s conclusion that the Government had sufficient knowledge of the allegations of fraud prior to the release. The circuit, however, affirmed the Court’s dismissal of the amended complaint because the plaintiff did not plead fraud with sufficient particularity, and the district court did not abuse its discretion in denying leave to amend.
Continue Reading Second Circuit Adds to Case Law Addressing Whether a Relator’s Release of FCA Claims is Enforceable