Nationstar Stops Bid to Reopen Whistleblower’s Foreclosure Suit

Nationstar Mortgage LLC defeated a whistleblower’s attempt to reinstate a False Claims Act suit alleging that the company made false claims to the government under federal programs to help homeowners during the 2008 financial crisis, an appeals court said Tuesday.

A federal district court correctly determined that whistleblower James Heron’s suit was precluded by the FCA’s public disclosure bar, the US Court of Appeals for the Tenth Circuit said in a nonprecedential opinion. The bar precludes suits based on information that has been disclosed in federal administrative hearings, government reports, news media, and other sources.

Heron alleged that Nationstar engaged ...