Qui Tam Lawsuit Against PVC Pipe Maker Unveiled

A recently-unsealed lawsuit against a maker of PVC pipe should serve as a powerful reminder to the manufacturing sector that its businesses may be vulnerable to expensive False Claims Act litigation.

Under the federal False Claims Act, any person with knowledge of fraud against the United States government may file a lawsuit on behalf of the government against the government contractor that committed the fraud. The individual filing the suit, referred to as the "qui tam plaintiff," receives a portion of the recovery if the suit is successful, with the remainder of the recovery going to the government. The federal government may choose to intervene in the suit, or the suit may continue with only the qui tam plaintiff suing the defendant if the federal government chooses not to participate. False Claims litigation has been prevalent. During the 12 months ending September 30, 2009, the federal government secured more than $2.4 billion in civil penalties under the False