SBK Capital LLC and other investment firms say the Justice Department must stop investigations into whether they violated the False Claims Act by improperly receiving loans under Paycheck Protection Program.

DOJ lacks statutory authority to use civil investigative demands because it failed to serve them before it decided not to join a whistleblower’s FCA suit, the firms told the US District Court for the Northern District of Florida in a May 22 petition.

The CIDs are illegal and unenforceable because of the government’s failure to satisfy FCA requirements, the petition says.

Congress enacted PPP as part of the CARES Act ...

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