Wartime Suspension of Limitations Act Available to Qui Tam Relators Even When the U.S. Does Not Intervene
Client Alert | 1 min read | 03.20.13
In U.S. ex rel. Carter v. Halliburton Co. (Mar. 18, 2013), the Fourth Circuit held that (1) dismissals of a qui tam plaintiff's FCA complaint under the first-to-file bar should be without prejudice, thereby allowing a relator to refile her complaint after the original action has been dismissed and is no longer "pending"; and (2) the Wartime Suspension of Limitations Act (WSLA), which tolls "any statute of limitations applicable to any offense[ ] involving fraud or attempted fraud against the United States" "[w]hen the United States is at war," applies (i) to both civil and criminal fraud against the United States, (ii) even without a formal declaration of war, and (iii) regardless of whether the U.S. intervenes. In a partial dissent, Judge Agee argued that allowing relators to benefit from the WSLA when the government has not intervened provides a "strong financial incentive for relators to allow false claims to build up over time before they filed, thereby increasing their own potential recovery."
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Important EU Court Judgment Clarifies Rules on Interest Due in Cartel Damages Cases
In a judgment that will have direct and immediate consequences, the Court of Justice of the European Union (CJEU) has clarified that for all competition damages actions brought after 26 December 2014, interest runs from the date on which the harm occurred. The ruling addressed two important questions: (1) whether national provisions implementing Article 3(2) of the EU Damages Directive — which requires interest to run from the date harm occurred —apply to cases in which the harm preceded the adoption of those provisions; and (2) how the date of harm should be determined in cartel cases involving the purchase of goods at inflated prices.
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