U.S. ex rel. Berkowitz v. Automation Aids, Inc.

Dist. Ct. did not err in dismissing plaintiff’s False Claims Act complaint for failure to state valid claim, where plaintiff alleged defendants violated said Act by making material false statements in that defendants knowingly sold products to U.S. from non-designated countries even though defendants had filed Trade Agreements Certificates that affirmed that they would only sell products from designated countries. Instant qui-tam action required plaintiff to comply with enhanced pleading requirements for fraud set forth in Rule 9(b), and plaintiff conceded that he could not allege that defendants made any express misrepresentations to govt. Moreover, although plaintiff attempted to premise instant action on implied false certification theory, plaintiff failed to supply underlying details demonstrating what had actually occurred at individualized transactional level for each defendant. Ct. rejected plaintiff’s argument that Rule 9(b) standard should be relaxed, where plaintiff did not have access to detailed information that would substantiate his claim. Fact that plaintiff had complied reports showing that defendants sold thousands of non-compliant products over three-year period did not require different result.