9th Circ. Says Fannie, Freddie Not 'Fed Agencies' Under FCA

By Bryan Koenig (February 22, 2016, 8:40 PM EST) -- A Ninth Circuit panel has refused to revive a whistleblower False Claims Act lawsuit based on Fannie Mae and Freddie Mac loans, finding in the decision published Monday that the entities don't qualify as agents of the U.S. and thus don't allow for FCA claims under that definition.

The panel chose not to weigh whether the relators could have brought their case based on the second definition for FCA claims eligibility — "non-governmental third parties under certain conditions" such as spending money on the government's behalf — because the would-be whistleblowers focused only on the inapplicable U.S. agent definition both in...

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