TAF Newsletter - False Claims Act - Qui Tam

    In 1999, the U.S. and Jim Stone won a $4.2 million False Claims Act jury verdict against Rockwell International which was defrauding the U.S. Government concerning hazardous waste disposal at the Rocky Flats Nuclear Weapons Plant in Colorado.
     In 2002, Rockwell appealed the verdict and lost. Rockwell then asked for a rehearing and lost for the third time in 2004.
     Now, almost 20 years after first blowing the whistle, and despite winning his case, Jim Stone's case is going to the U.S. Supreme Court.
     The issue? Was Jim Stone an "original source" as defined under the False Claims Act?
     It's worth noting what is NOT being argued in this case. There is no question that Rockwell International is guilty of ripping off the American people -- their second offense under the False Claims Act. Nor is there any question that Jim Stone was the first person to bring to the Government's attention the fact that nuclear waste was being improperly disposed of at Rock Flats due to defects in the "pondcrete" manufacturing process. Finally, there is no question that the Government amended and joined Jim Stone's original complaint when it finally decided to take Rockwell International to trial. The only question is whether Rockwell International -- the guilty party -- can determine who is, and who is not, an original source in a case that has been joined by the U.S. Department of Justice.
     Arguments in the case are expected to be heard December 5th.

"The Good Guys" In Brief: Two citizens reporting fraud against U.S. taxpayers; the chief lawyer for the United States Government; the U.S. Senator that co-authored the 1986 False Claims Act amendments, and; the leading nonprofit organization representing taxpayer interests in the False Claims Act arena.

Brief for James Stone (PDF) - Whistleblower
Brief of the Solicitor General of the United States (PDF)
Amicus Curiae brief of Sen. Charles Grassley (PDF)
Amicus Curiae brief of Taxpayers Against Fraud and NELA(PDF)
Amicus Curiae Brief of Dr. Patricia Haight (PDF)

"The Bad Guys" In Brief: A repeat fraud-feasor; an aggressive litigator for corporate interests; a trade association for corporations; a pharmacy trade association whose members have repeatedly engaged in fraud against U.S. taxpayers; a national defense trade association whose members have repeatedly engaged in fraud against U.S. taxpayers, and; a hospital trade association whose members have repeatedly engaged in fraud against U.S. taxpayers.