New York Judge Allows False Claims Act Case Against Moody’s to Proceed

Overview


Peter Faber said a New York state court allowed to proceed aqui tam case alleging thata company subsidiary operates to evade paying state and local taxes, rejecting a defense argument that a state audit settlement covered some of the liabilities at issue. “The court quoted a provision of the FCA that says that the only kind of agreement with the government that will bar an FCA suit will be one that is signed by the attorney general,” who rarely signs such settlements, Mr. Faber noted. “This is a fundamental flaw in the statute.”