There are multiple elements to a good Qui Tam case - try Westlaw, it's great - but if one of these discontents stumbles into your office or makes a nervous phone call, you definitely should make sure that it's actually inside information they're wanting to squeal about and not something that's publicly disclosed. Because if everyone knows about it, it ain't fraud and no one's blowin' any dabgum whistles.
Like with Charlotte Law, the gorgeous murdered slut of North Carolina:
Judge Roy Dalton Jr. of the U.S. District Court for the Middle District of Florida on Monday granted InfiLaw’s motion to dismiss the qui tam suit filed in 2016 by former Charlotte School of Law professor Barbara Bernier, who alleges the school and its corporate owners defrauded the federal government of more than $285 million by admitting unqualified students in order to pocket their government-issued loans. Dalton ruled that InfiLaw’s myriad problems had already been publicly disclosed in news stories and posts written on law faculty blogs before Bernier file her suit.Cue the sad trumpet of a federal court butt-kicking.
The judge's opinion may be scathing against Infilaw and rely on an assumption that Charlotte Law was committing a massive fraud, but the point is that it was obvious and everyone knew. The newsmedia, that fantastic fourth estate, did its job perfectly. No million dollar paydays, here!
This of course fits nicely with the idea of the sophisticated consumer. If - IF! - law schools were committing fraud, everyone knew it, student and third-tier professor alike. Tweet it like Trump: No fraud! - particularly since people kept buying the product.
Bernier has time to amend the complaint, so we'll see what gets pulled out of litigation's back-alley dumpster to reserve a judge who obviously was reading the papers and knew the score. But in the meantime, it's essential to find people who know real secrets to bring a whistleblower action.
Law schools weren't scamming anyone, but it was widely known that they were.
Ha! If there is any justice in this world, then at least the Law Profs are getting the same smack-down as were the law students those self-same law profs derided a scant few years ago. "Sophisticated Consumers" indeed...!
ReplyDeleteTake-home lesson - do not, under any circumstances, try to disrupt the revolving door, you will get smacked for your insolence. Look at Wall Street and the SEC, for example...