Formosa Can't Shake FCA Suit Over Defective Pipes

Law360, Los Angeles (February 12, 2013, 7:40 PM EST) -- A California federal judge Monday denied Formosa Plastics Corp.'s bid to escape a False Claims Act suit over defective PVC pipes but said it could argue that the case against it is an unlawful extension of the law at a later stage of the litigation.

Formosa contends the case should be dismissed because it was only an alleged third-party beneficiary of a false claim and the FCA's “inadvertent submission” provisions apply only to submitters of false claims. The federal government and several states have accused Formosa...
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