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Under the state's False Claims Act and Insurance Frauds Prevention Act, a qui tam plaintiff must file the complaint under seal and send it to the Attorney General or Insuance Commissioner and district attorney.  Only after those entities decide not to intervene and take over prosecution of the action may the plaintiff serve the defendant(s) and proceed to litigate the… Read More

This decision rejects plaintiff's argument that the PAGA statute violates the state constitution's separation of powers clause because it supposedly allows private citizens to seek civil penalties on the state’s behalf without the executive branch exercising sufficient prosecutorial discretion.  The contention is barred by Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348, 360 which held that “PAGA… Read More

The Insurance Fraud Prevention Act (IFPA; Ins. Code 1871, et seq.) allows qui tam plaintiffs to file lawsuits on the government’s behalf and seek monetary penalties against perpetrators of insurance fraud.  To prevent duplicative lawsuits, the IFPA contains a “first-to-file rule” (Ins. Code 1871.7(e)(5)) that bars parties from filing subsequent actions related to an already pending lawsuit.  This decision holds… Read More

A qui tam complaint under the California False Claims Act must be filed under seal to give the Attorney General an opportunity to investigate the claim to see if she wishes to intervene and take over prosecution of the suit.  While the complaint remains sealed at the Attorney General's or a local prosecutor's request, it is impossible, impractical or futile… Read More

If a qui tam False Claims Act suit rests on genuinely new and material information not publicly disclosed by a government audit, report, hearing or investigation, the suit may proceed though it arises from the same transactions as the prior public disclosure. Read More