Chase, Citi Beat FCA Suit Over Fannie, Freddie Payments

Law360, New York (December 12, 2013, 3:55 PM EST) -- A Nevada federal judge on Wednesday dismissed a False Claims Act suit alleging 16 banks including JPMorgan Chase Bank NA, Citimortgage Inc. and Bank of America NA violated contracts with Freddie Mac and Fannie Mae, finding the claims did not qualify under the FCA.

U.S. District Judge Robert C. Jones said relators James R. Adams and Puoy K. Premsrirut had failed to state a claim, given the fact that Freddie and Fannie, though they are government-sponsored entities, are not actually government agencies.

“[Fannie and Freddie are]...
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