Bankrupt Whistleblower Can Sue Medical Co. In Kickback Row

Law360 (August 4, 2020, 10:48 PM EDT) -- A whistleblower who filed for bankruptcy has legal standing to sue an eye products supplier over an alleged kickback scheme, as a trustee for his bankruptcy estate released its right to the claims, a Minnesota federal judge held Tuesday.

Even if the court assumed that the False Claims Act claims brought against Cameron-Ehlen Group Inc. by Kipp Fesenmaier actually belonged to his bankruptcy estate when he filed suit in November 2013, Eighth Circuit precedent holds that if the trustee for an estate abandons such claims, they revert to the debtor, U.S. District Judge Wilhelmina M. Wright said.

"Fesenmaier's right to the...

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