Federal Employees Can Bring Qui Tam Suit, 5th Circ. Rules

Law360, New York (August 1, 2012, 2:49 PM EDT) -- The Fifth Circuit said Tuesday that two federal auditors who uncovered $19 million that Royal Dutch Shell PLC owed the U.S. in offshore drilling royalties could bring a whistleblower suit even though they discovered the alleged fraud in the course of their jobs.

Both Shell and the U.S. government had argued that the False Claims Act barred federal officials who uncover fraud as part of their official duties from bringing a qui tam lawsuit. But a three-judge appeals panel said unanimously that there was no basis...
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