RICHARD J. LEON
Motion granted.
Patrick Anthony Klingman, Klingman Law, LLC, Hartford, CT, Scott Rhead Shepherd, Shepherd, Finkelman, Miller & Shah, LLP, Media, PA, for Plaintiff. David Francis Dowd, Mayer Brown LLP, Washington, DC, for Defendants.
MEMORANDUM OPINION
[Dkt. # 33]
RICHARD J. LEON, United States District Judge
Plaintiff-relator Todd Heath brings suit under the qui tam provisions of the False Claims Act, 31 U.S.C. § 3729–3732, on behalf of the United States government, seventeen states, the District of Columbia, and two cities against AT & T, Inc. and nineteen wholly-owned subsidiaries (together, the “AT & T defendants”). Compl. [Dkt. # 1]. Heath alleges AT & T, Inc. and its regional operating companies fraudulently overbilled school districts and libraries from 1997 through 2009 for telecommunications services provided as part of the federal E–Rate program. Id.
The complaint brings claims on behalf of the following states and localities: California, Delaware, Florida, Hawaii, Illinois, Indiana, Massachusetts, Minnesota, Montana, Nevada, New Jersey, New Mexico, New York, North Carolina, Rhode Island, Tennessee, Virginia, the District of Columbia, Chicago, and New York City. The United States, California, Florida, Illinois, Massachusetts, New York, New Jersey, North Carolina, Tennessee, and the District of Columbia have declined to intervene. The other named states have not made their position known. United States ex rel. Heath v. AT & T, Inc., No. 1:11–cv–1897 at Dkt. # 6–10, 12–14, 25.
Defendants move to dismiss the complaint on a number of grounds. Among them is that this court lacks jurisdiction to hear the United States False Claims Act claim because Heath previously had filed a complaint in the Eastern District of Wisconsin alleging the same fraud by AT & T's Wisconsin operating company, thereby barring this action under the Act's “first-to-file” rule. Defs.' Mot. to Dismiss Relator's Compl. 1 [Dkt. # 33]. In addition, the AT & T defendants argue that this Court should decline to exercise pendant jurisdiction over Heath's state and local claims. Id. For the reasons discussed herein, defendants' motion will be GRANTED. MEMORANDUM OPINION
Motions, Pleadings and Filings (Back to top)
• 2014 WL 292116 (Trial Motion, Memorandum and Affidavit) Memorandumof Law in Support Ofdefendants' Motion to Dismiss Relator's Complaint (Jan. 7, 2014) Original Image of this Document (PDF)
• 1:11cv01897 (Docket) (Oct. 28, 2011) -------- Notes:
Defendants also argue that the False Claims Act claim is barred by the Act's public disclosure bar and that the Complaint fails to meet the pleading requirements of Federal Rules of Civil Procedure 8(a), 9(b), and 12(b)(6). Mot. to Dismiss [Dkt. # 33]. Because the claim is barred by the first-to-file rule, I need not and do not reach the AT & T defendants' arguments regarding public disclosure and failure to satisfy the pleading requirements.