The law firm of Kirby McInerney LLP is proud to announce that a False Claims Act whistleblower case it brought has resulted in a $6.5 million settlement and the defendant’s exclusion from government-funded healthcare programs.

The Second Circuit decision exempts manipulation of US futures exchanges from the Commodities Exchange Act—the main body of law governing such exchanges—provided the conduct is carried out from overseas locations. It poses a fundamental threat to the integrity of those markets, with far-reaching adverse economic consequences for American businesses and consumers. 

KM Partner Randall Fox is quoted in a Law360 article discussing the recent expansion of tax-related whistleblower cases under the New York False Claims Act, now allowing for cases to be brought against wealthy individuals and businesses that do not file New York tax returns and pay New York taxes they owe.  Previously, such non-filers could escape liability because the statute applied only where a whistleblower could point to specific false statements or records related to tax obligations.

Fox described that the importance of the amendment is that it will lead to enforcement against non-filers who are notoriously difficult to find through the traditional audit process: “if tax audits are akin to finding a needle in a haystack, ‘here, you don’t even have a haystack.’”

KM partner Randall Fox has published an article in Law360 discussing how New York has already decided an important issue about the “knowledge” element of the False Claims Act that will be argued next month before the U.S. Supreme Court. In the Sprint case under the New York False Claims Act, New York’s high court ruled in 2015 that the knowledge element depends upon a defendant’s contemporaneous understanding of the applicable rules. In the cases now before the Supreme Court, the defendants are arguing that they can instead rely on interpretations asserted for the first time after the False Claims Act case was filed.

"The stakes in the action were extremely high given, among other things, the amount of money at issue, and the large size of the settlement class ... Plaintiff's counsel conducted the litigation and achieved the settlement with skill, perseverance and diligent advocacy, and they are highly experienced in the field of securities class action litigation."

“Kirby played an integral role in this case and assumed significant risk… Kirby’s work was at a very high level [and] Kirby’s work greatly benefited the Class.”

KM received the highest available commendations from the City of New York four years in a row for its work on the AWP Litigation. In each of those four years, KM’s efforts on the City’s behalf received the overall rating of “excellent”. The City elaborated, “Kirby did a truly excellent job and the results reflect that.”

“[KM] represented us diligently and successfully. Throughout [KM’s] representation of our firm, [KM’s] commitment and attention to client concerns were unimpeachable.”