Small Business Fraud Suit Will Stay Closed, D.C. Circuit Says

Veterans Medical Transcription Services Inc. and its owners defeated a bid to revive a False Claims Act suit alleging they made misrepresentations to win government contracts set aside for service-disabled veteran-owned small businesses.

A federal district court ruled in November 2023 that whistleblower Thomas Bailey failed to plead fraud with particularity against the medical transcription services company as required by Federal Rule of Civil Procedure 9(b), the US Court of Appeals for the D.C. Circuit affirmed in a judgment.

Bailey didn’t “say who made which misrepresentations—or who submitted which fraudulent claims” to the government, the appeals court said.

Failing to ...