Private Equity Firms Get Dismissal of Paycheck Protection Suit

New Harbor Capital Fund LP and other private equity firms convinced a federal district court to stop a whistleblower’s False Claims Act suit alleging they made misrepresentations to get Paycheck Protection Program loans.

Whistleblower James R. Berkley’s claims triggered the FCA’s public disclosure bar, which precludes suits if they raise allegations that are substantially similar to publicly disclosed information, such as news articles, Judge John J. McConnell, Jr. of the US District Court for the District of Rhode Island said in a Sept. 26 opinion granting summary judgment to the defendants.

“The essential facts giving rise to an inference of ...