False Claims Act Case: Whistleblower vs. Corporate Misconduct

United States ex rel. Cooley v. ERMI LLC involved a qui tam False Claims Act action brought by a former Chief Compliance Officer who alleged that her employer submitted fraudulent claims supported by false records and statements. She also alleged retaliation after raising concerns about the conduct.

ERMI asserted counterclaims involving fiduciary duty, negligence per se, and breach of contract. The court dismissed the fiduciary-duty and negligence-per-se theories without prejudice or for insufficient support, while allowing the contract claim to continue. The case highlights the interplay between whistleblower protections, FCA litigation, and counterclaims asserted against relators.

Original article:https://www.whitcomblawpc.com/business-law-blog/false-claims-act-case-whistleblower-vs.-corporate-misconduct