A recent Ninth Circuit decision underscores why importers should be worried that they will be hit with a large government bill under the False Claims Act (FCA) to pay for newly raised duties imposed on imported products. The case concerned an importer of welded pipe fittings from China that fought antidumping duties and took its case to trial before a jury. After it lost, the District Court ordered $8,085,546.03 in single damages and then trebled it, plus costs, for an award of approximately $26 million. The importer appealed and ultimately lost again at the Ninth Circuit. The case raised complicated legal points that might have had some traction during pre-trial settlement negotiations but less so now, with the Ninth Circuit’s affirmation on June 23, 2025. United States ex rel. Island Industries v. Sigma Corporation, ___ F.4th ___ No. 22-55063 (9th Cir. June 23, 2025).
Jurisdiction. First, Sigma tried to avoid jurisdiction by arguing the general customs enforcement statute blocked the United States’ or a relator’s right to bring an FCA case, arguing that 19 U.S.C. § 1592 is the exclusive cause of action available to the United States. Like the FCA, § 1952 prohibits false statements or material omissions to support claims for imported goods into the United States and further provides a specific mechanism for the United States to recover fraudulently or negligently avoided customs duties. The Ninth Circuit, however, rejected Sigma’s argument that § 1592 provided the sole...
has moved to calm the nerves of millions of social grant beneficiaries following the circulation of a fake video on social media, which "falsely claims that all recipients must re-register or risk...