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Justices Revive FCA Suit Against Wells Fargo, Citing Escobar

Law360, New York (February 21, 2017, 12:50 PM EST) -- The U.S. Supreme Court breathed new life into a False Claims Act case against Wells Fargo & Co. on Tuesday, telling the Second Circuit to take a look at former employees’ claims that the bank defrauded the federal government under the standard set in the so-called Escobar case last summer.

The Second Circuit had affirmed the dismissal of the suit against Wells Fargo just a month before the Escobar case was decided by the U.S. Supreme Court. (AP) In their summary disposition, the justices gave Paul Bishop and Robert Kraus another chance to argue that their case wouldn’t have been dismissed...

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