Lanahan v. County of Cook

Dist. Ct. did not err in dismissing relator’s amended qui tam action, alleging that defendant-County violated False Claims Act (FCA) by misusing federal grant money. Dist. Ct. could properly find with respect to claims of presenting false statements for payment and for use of false statements that relator failed to adequately plead any particular false statement or claim. Dist. Ct. also could properly dismiss plaintiff’s conversion and claim for reverse false claims, where plaintiff had failed to contain sufficient facts indicating that defendant had retained any funds that properly belonged to federal government. Ct. further noted that claims under FCA are subject to heightened pleading standard under Rule 9(b) that required plaintiff to provide facts demonstrating “who, what, when, where and how” fraud was perpetrated. Plaintiff’s general allegations that defendant profited from reimbursements of false claims and was reimbursed despite falsity of underlying claim were insufficient under Rule 9(b). Ct. further observed that plaintiff had failed to link any false expense report to any government payment.