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January 28, 2020

Official Says DOJ Probing TPLF in False Claims Act Cases

During a recent keynote address, Deputy Associate Attorney General Stephen Cox said the U.S. Department of Justice (DOJ) is looking into the use of third party litigation funding (TPLF) in False Claims Act cases, Law360 reports.

Cox addressed the 2020 Advanced Forum on False Claims and Qui Tam Enforcement this week to discuss a number of enforcement-related topics. He said DOJ is “considering what, if any, interests the United States has with respect to third-party litigation financing in qui tam litigation”  and whether it will push for “some disclosure, at least to the department, of such arrangements.” He pointed to instances in which a whistleblower was accused “of attempting to profit from qui tam litigation through short selling stock.”

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