False Claims Act Suit By Former Employee Claiming PPP Loan Fraud Evades Dismissal

(September 26, 2024, 1:05 PM EDT) -- SAN DIEGO — A California federal judge on Sept. 25 declined to dismiss a lawsuit brought on behalf of the United States under the False Claims Act (FCA) by a financial officer alleging that the company that formerly employed him received a Paycheck Protection Program (PPP) loan during the COVID-19 pandemic by altering or misrepresenting its payroll records, finding that the officer sufficiently pleaded that false statements were knowingly made on the PPP application and that the officer appeared to be the original source of the information....