The 4th U.S. Circuit Court of Appeals held that a school trustee could not pursue a False Claims Act retaliation claim because his board membership and fundraising and recruitment activities did not make him an agent authorized to affect the school’s legal relations.

The plaintiff challenged his removal from the board of trustees of Charleston Day School, alleging that the school retaliated against him for investigating possible fraud involving federal Covid funding. The U.S. District Court for the District of South Carolina granted summary judgment to the school, finding that the plaintiff lacked a qualifying relationship under the False Claims Act and had not established the school’s knowledge of protected activity or retaliatory causation.

The plaintiff, a former federal prosecutor, joined the board in 2021 and served on three committees. He also was asked to raise funds and recruit families. After reviewing financial documents concerning pandemic assistance, he requested additional records about the school’s use of those funds. The board later removed him, citing disruption, challenges to school leadership, threatened litigation and failures to act in the school’s interests.

The 4th Circuit concluded that the plaintiff was not protected by the False Claims Act’s anti-retaliation provision, which applies to employees, contractors and agents. Because the plaintiff relied solely on agency status, common-law agency principles controlled.

Those principles require authority...

Read Full Story: https://news.google.com/rss/articles/CBMiugFBVV95cUxOWHhaSXFueTRNc3ZGNVBYdnox...