Court Dismisses Whistle-Blower’s FCA Case For Hiding it From Creditors in Bankruptcy

A federal district court in North Carolina dismissed a False Claims Act whistle-blower’s lawsuit against a health-care clinic chain executive Sept. 18 for failing to disclose the pending action as an asset during a bankruptcy proceeding (United States ex rel. Saidiani v. NextCare Inc., 2014 BL 259597, W.D.N.C., 3:11-cv-00141-GCM, 9/18/14).

The U.S. District Court for the Western District of North Carolina held that relator Antonio Saidiani didn’t have standing to pursue the claim following his Chapter 7 bankruptcy proceeding because it became an asset of the bankruptcy estate, at which point only the bankruptcy trustee retained standing.

Saidiani ...