HD Supply, Home Depot Lose Bid To Nix FCA Suit

Law360, New York (April 25, 2011, 4:36 PM EDT) -- A California federal judge on Friday refused to dismiss a suit accusing HD Supply Inc. and Home Depot Inc. of violating the False Claims Act and Buy American Act by selling imported construction materials to government agencies.

U.S. District Judge R. Gary Klausner said the relators had adequately alleged that companies submitted false claims for payment because they submitted bills while knowingly breaking key terms of their contract that required them to use American-made or pre-approved materials.

Judge Klausner ruled that the alleged breaches could make...
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