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Commercial Division Blog

Current Developments in the Commercial Divisions of the
New York State Courts
Posted: July 9, 2018

State Qui Tam Action Dismissed Because Allegations Were Based on Public Information

On June 28, 2018, the First Department issued a decision in State of New York ex rel. Rasmusen v. Citigroup, Inc., 2018 NY Slip Op. 04845, affirming the dismissal of a state qui tam action because “[t]he court lacked subject matter jurisdiction over this action because plaintiff’s allegations that defendant wrongfully underpaid its New York State taxes are derived from and are substantially similar to allegations that were already in the public domain.”

The New York False Claims Act (as well as the federal False Claims Act on which it is modeled) provides a way for private citizens to bring claims against those who defraud the government by making false claims to the government. This decision illustrates one of the many restrictions on false claims act cases. Contact Schlam Stone & Dolan partner John Lundin at jlundin@schlamstone.com if you or a client have non-public information about someone who has been cheating the government.

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