An appeals court has tossed a False Claims Act case against Verizon Communications Inc., ruling that the suit is barred by an earlier case in which the same whistleblower netted a big settlement. The ruling follows an oral argument that piqued the interest of business lobbying group the U.S. Chamber of Commerce.
In a 24-page decision, the U.S. Court of Appeals for the D.C. Circuit dismissed claims that Verizon overcharged the government for telecommunications services in violation of the FCA (more explanation here: http://www.justice.gov/opa/pr/2011/April/11-civ-428.html). The court ruled that the case is prohibited under the FCA’s first-to-file rule, which bars suits that recycle facts and allegations from an earlier suit.
