Federal Law Preempts DHL's Calif. False Claims Suit: Judge

Law360, New York (August 9, 2012, 9:18 PM EDT) -- A California state judge on Thursday tossed a suit accusing DHL Express USA Inc. of violating the state's False Claims Act by overcharging government agencies for package deliveries and said the claims are preempted by federal laws.

Judge Joseph R. Kalin sided with DHL’s argument that the claims by former DHL trucking contractors Kevin Grupp and Robert Moll are preempted by the Airline Deregulation Act of 1978 and the Federal Aviation Administration Authorization Act, which trump state regulation of motor freight carriers.

“We think it was...
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