Shupe v. Cisco Systems, Inc., et al.

Relator filed a qui tam action on behalf of the United States alleging that defendant telecommunication companies violated the False Claims Act (FCA), 31 U.S.C. 3729, while bidding for and being awarded contracts to install and operate communications networks for school districts and libraries throughout South Texas. Defendant filed an interlocutory appeal of the denial of a motion to dismiss for failure to state a claim under the FCA. This case decides when the Government "provides any portion of" requested money, as to trigger the protection of the False Claims Act, a statute that shadows every aspect of the administrative state. Because there are no federal funds involved in the program, and USAC is not itself a government entity, the court agreed that the Government does not provide any portion of the requested money under the FCA. Accordingly, the court reversed and remanded for further proceedings.View "Shupe v. Cisco Systems, Inc., et al." on Justia Law