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Government Sees $104 Million Verdict Vanish After Its Theory of Liability Is Rejected Post-Trial

Client Alert | 1 min read | 01.08.15

U.S. ex rel. Bunk v. Birkart Globalistics, an FCA case spanning twelve years and two jury trials, came to an apparent end when the district court set aside the jury's verdict and damages award of $104 million, ruling that the government's theory of liability failed as a matter of law. The government's upset "expectations" of competitive bidding was itself an insufficient ground for a finding of falsity, and the government failed to show that any of the cargo carriers bidding on the contracts "presented a claim for payment based on a prime rate that was, in fact, inflated because of Gosselin's alleged conduct" and failed to present sufficient evidence of damages.


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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....

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