Shady Canyon Golf Club Inc. in Irvine, Calif., secured dismissal of a whistleblower’s False Claims Act suit accusing the club of fraudulently obtaining a Paycheck Protection Program loan during the Covid-19 pandemic.
Relator LLC failed to plead fraud with the specificity required by the Federal Rules of Civil Procedure, because its assertion that the club didn’t need financial assistance during the pandemic was “speculative,” Judge James V. Selna of the US District Court for the Central District of California said in a Thursday order granting a motion to dismiss. The whistleblower is permitted to amend its claims.
Congress enacted the ...