Whistleblower Lawsuit Clears Major Hurdle
The decision allows Todd Heath, a school district auditor, to move forward with his FCA lawsuit, originally filed in 2008. Heath claims that Wisconsin Bell manipulated billing practices, securing inflated reimbursements from the E-Rate program, which helps schools and libraries obtain affordable internet access.
The False Claims Act, a powerful anti-fraud law, enables whistleblowers, known as “relators”, to sue on behalf of the government and claim a share of the recovered funds. With the high court’s ruling, Heath’s case is now set to proceed to trial.
A Landmark Ruling with Far-Reaching Consequences
The ruling has major implications for telecom companies participating in federal subsidy programs. It expands the reach of the False Claims Act, making it clear that companies cannot shield themselves by arguing that federally managed funds are private simply because they pass through third parties.
Despite the ruling, representatives for Wisconsin Bell and the FCC remained tight-lipped, declining to comment on the decision.
