Puerto Rico Sports Agency Shielded From False Claims Act Suit

Federal prosecutors are barred from pursuing a False Claims Act suit against the Puerto Rico Department of Sports and Recreation alleging federal education funding fraud because department has immunity, a district court ruled.

The department is a state entity, which precludes it from being a “person” that can be sued under the FCA, Judge Raúl M. Arias-Marxuach of the US District Court for the District of Puerto Rico said Wednesday.

Puerto Rico isn’t one of the 50 states, but its generally considered a state for legal purposes, the court said.

The department is a state agency because it was created ...