A whistleblower failed to show that California-based Hawthorne Machinery Co. and others violated the False Claims Act by misrepresenting how many employees the company had in order to receive a Paycheck Protection Program loan, a federal district court ruled.
Whistleblower Roger S. Craig’s suit failed for lack of materiality because the US Small Business Administration forgave the loan after he filed his complaint, Judge William Q. Hayes of the US District Court for the Southern District of California said in a Monday order granting the defendants summary judgment.
A falsehood is material under the FCA if it has natural tendency ...