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United States Third Circuit

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Petras v. Simparel Inc., 15-4020

In suit alleging a reverse False Claims Act (FCA) claim against plaintiff's former employer, contending that defendants knowingly and improperly avoided a contingent obligation to pay accrued dividends to an investing entity after the entity had been placed into receivership and was being operated by the SBA, the district court's dismissal of the first and second amended complaint is affirmed where under the FCA provision’s plain language, the defendants could not have knowingly and improperly avoided or decreased an obligation to pay the accrued dividends at the time of their alleged misconduct because the obligation did not yet exist; and 2) even if the SBA qualified as the Government for purposes of plaintiff's FCA action, the reverse FCA claim would still be dismissed.

Appellate Information

  • Decided
  • Published 2017/05/18


  • McKEE


  • United States Third Circuit


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