Staples, Target Dodge Chinese Pencil Duties Suit

Law360, New York (March 25, 2013, 4:36 PM EDT) -- A Washington federal judge on Friday dismissed a lawsuit claiming Staples Inc., OfficeMax Inc. and Target Corp. defrauded the U.S. government out of duty payments by importing Chinese pencils through other countries.

U.S. District Judge Richard J. Leon ruled that the lawsuit's anonymous plaintiff couldn't sue as a whistleblower under the False Claims Act because he hadn't blown the whistle on anything, since the information that formed the basis of his case was already publicly available.

“The FCA incentivizes qui tam suits by whistleblowers with inside...
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