Whistleblower Says Ch. 11 Filing Can't Delay Suit

By Rick Archer (September 25, 2017, 6:52 PM EDT) -- A relator accusing contractor Capitol Supply Inc. of selling the U.S. government Chinese-made office equipment on Monday asked a D.C. federal court to exclude his suit from Capitol's bankruptcy stay.

Louis Scutellaro said the federal government's partial intervention in his False Claims Act suit excludes his claims from the stay brought on by Capitol Supply's bankruptcy filing last week, which Scutellaro claimed was a tactic to delay the suit.

"Relator contends that defendant's strategy should not succeed, in light of established precedent that the automatic bankruptcy stay does not apply to False Claims Act cases brought by the United States —...

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