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False Claim Act Defense – Multiple Municipal Rail Projects, Western United States

Finch, Thornton & Baird represented two prime contractors that performed large-scale municipal rail projects for the same owner.  Both primes were sued for False Claims Act violations by a purported “whistleblower” plaintiff.  The plaintiff alleged the contractors had fraudulently substituted cheaper materials and construction methods.

The plaintiff sought damages and penalties in excess of $10 million.  The firm promptly investigated and refuted the claims—seeking both to win the case and to maintain the contractors’ reputations and relationships with their public entity clients.  The firm obtained a court-ordered dismissal of the case without the public entity owner joining the plaintiff’s allegations or the plaintiff having the opportunity to conduct any discovery.  The whistleblower plaintiff recovered nothing.  The firm also recouped litigation fees and costs from subcontractor insurers, so as to minimize out-of-pocket expense by its prime contractor clients.

Counsel: P. Randolph Finch Jr.

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