Similar State FCA Allegations Yield Mixed Results
Client Alert | 1 min read | 03.03.05
In two California Civil False Claims Act (FCA) cases recently decided by different districts of the California Court of Appeal, California ex rel. Harris v. PricewaterhouseCoopers LLP (Jan. 20, 2005) and California ex rel. Bowen v. Bank of America (Jan. 31, 2005), qui tam relators got mixed results on their novel “reverse false claims”allegations that the defendants failed to report and turn over to the State unclaimed property as required by California law. In Harris, applying case law under the federal FCA, the court upheld liability against an escrow title company and reversed summary judgment in favor of its accountants; but in Bowen, the Court, also applying federal case law, upheld the dismissal of the consolidated complaint against several banks on the ground that the plaintiffs had failed to allege facts that would make the subject property “certain and liquidated,” such that no reverse false claim could arise from the failure to report and turn over the property.
Insights
Client Alert | 3 min read | 11.21.25
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.
Client Alert | 3 min read | 11.20.25
Client Alert | 3 min read | 11.20.25
Client Alert | 6 min read | 11.19.25
