Recently, a New York federal judge dismissed an FCA suit, filed by a private party on behalf of the FDIC through a civil qui tam action, alleging that $400 million had been defrauded from the FDIC. The FCA “may be enforced not just through litigation brought by the U.S. Government itself, but also through civil qui tam actions that are filed by private parties” when federal prosecutors decline to pursue the matter, “in the name of the Government.” However, to prevent opportunistic plaintiffs from litigating without significant contribution, the FCA provides that private litigants are barred from bringing suits for conduct that has already been publicly disclosed unless they are the “original source of the information.” In this case, the judge reasoned that the claims brought by the private party arose from allegations or transactions that had already been publicly disclosed and the private litigant was not an “original source” of that information.
In 2010, the FDIC was appointed to be the receiver of a failing Chicago-based bank in the business of providing construction and other loans secured by real property. The FDIC solicited bids on the failing bank’s loans and ultimately accepted the proposal of the Defendant, a mid-western regional bank. The proposal included a discount for the failing bank’s assets under a shared loss arrangement in which the FDIC agreed to assume a percentage of future losses on the loans, and Defendant agreed to pay the FDIC a similar percentage...
North Korea on Sunday rejected US allegations of cybercrimes originating from there, calling them "absurd slander" and denying it poses a cyber threat, state media KCNA reported. In 2024, a United...