Long v. GSD&M Idea City, LLC, No. 14-10999 (5th Cir. 2015)
Annotate this CasePlaintiff filed a qui tam action against GSD&M under the False Claims Act (FCA), 31 U.S.C. 3730, alleging that GSD&M misrepresented its profits and overhead during contract negotiations with the Air Force. At the time of filing, plaintiff was the debtor in a confirmed Chapter 13 bankruptcy plan and he failed to disclose his FCA claims to the bankruptcy court. The district court dismissed the FCA claims under the doctrine of judicial estoppel and plaintiff appealed, arguing that judicial estoppel should not apply because he had no motive to conceal his FCA claims from the bankruptcy court, especially given that his repayment plan required repaying 100% of the principal of his debts. The court affirmed the judgment, concluding that the district court did not abuse its discretion in dismissing the claims because the district court's findings, that plaintiff knew about his claims while his bankruptcy was still pending and had a motive to conceal, are supported by the record. The court rejected plaintiff's remaining claims and affirmed the judgment.
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