Two California staffing services companies will again defend against a False Claims Act suit alleging they made false statements to receive loans under the Covid-19 pandemic Paycheck Protection Program, an appeals court said.

A California federal district court erred in concluding that Relator LLC didn’t adequately allege that iLink Employers Company and iLink Business Management Inc., and their CEO, falsely told the US government they were eligible for loans under the pandemic-era assistance program, the US Court of Appeals for the Ninth Circuit said in non-precedential decision to reverse and remand.

• The lower court in 2024 dismissed the suit, ...

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