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Client Alert | 1 min read | 03.02.06

In M. Eagles Tool Warehouse, Inc. (d/b/a S&G Tool Aid Corp.) v. Fishing Tooling Company, Inc. (d/b/a Astro Pneumatic Tool Co., (No. 05-1224, -1228, February 27, 2006) , the Federal Circuit reverses a district court's grant of summary judgment that a patent is unenforceable due to inequitable conduct. The summary judgment motion asserted that patent was unenforceable for not disclosing information regarding the 20- year selling of a predecessor product to the PTO. The district court found that the information was material because the predecessor product contained claim limitations that the patent examiner held not to be found in the prior art and inferred an intent to deceive from a lack of good faith explanation for not disclosing that prior sale information.

In reversing, the Federal Circuit panel states that intent to deceive cannot be inferred solely from the fact that information was not disclosed; but that there must be a factual basis for a finding of deceptive intent. That is, a failure to disclose prior art to the patent examiner, where the only evidence of intent is a lack of a good faith explanation for the nondisclosure, cannot by itself constitute clear and convincing evidence sufficient to support a determination of culpable intent. To satisfy the requirement of the intent to deceive element of inequitable conduct, the involved conduct, viewed in light of all the evidence of good faith, must indicate sufficient culpability to require a finding of intent to deceive.

[http://www.cafc.uscourts.gov/sites/default/files/opinions-orders/05-1224.pdf].

Insights

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....