Fried Frank Attorney Provides Commentary on NYC False Claims Act

Fried Frank Attorney Provides Commentary on NYC False Claims Act

Fried, Frank, Harris, Shriver & Jacobson LLP attorney John T. Boese, a nationally recognized expert on the civil False Claims Act and qui tam actions, was invited to testify tomorrow on a proposed bill that will provide incentives for people who sue businesses and individuals who defraud the New York City government.

The bill, sponsored by New York City Council member David Yassky, a Brooklyn Democrat, will reward whistleblowers who sue businesses that defraud the city as much as 25% of any civil court judgment. The proposed law mirrors federal law.

In his testimony, Mr. Boese urges several changes to the legislation that he argues will make the law more effective, fair and efficient. Among the changes are provisions for the city to: maintain complete control over lawsuits arising from the legislation; better define what constitutes a false claim to help eliminate frivolous suits; make the amount of the mandatory penalty payment provisions discretionary; eliminate provisions that would allow city employees to recap personal windfalls from their public duties; and eliminate the exemption from liability for senior city officials.

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