Relators filed qui tam action under False Claims Act, alleging that Home Depot knowingly engaged in a scheme to avoid payment of retailers' occupation tax to Illinois Department of Revenue by treating the sale and installation of dishwashers and over-the-range microwave ovens as a construction contract. Court erred in dismissing relators' 3rd amended complaint. An audit conducted by Department does not qualify as an administrative civil money penalty proceeding in which the State was already a party. The government action bar, like the public disclosure bar, does not defeat the relators' action. Allegations in 3rd amended complaint constituted specific allegations of facts from which fraud was the necessary or probable inference. An actual completed transaction was not necessary to plead a violation of the Act. (PUCINSKI and HYMAN, concurring.)
Illinois Appellate Court
Civil Court
Qui Tam Actions