August 16, 2010
STATE BAR ASSOCIATION COMMENDS GOVERNOR PATERSON FOR
SIGNING LEGISLATION TO STRENGTHEN NEW YORK’S FALSE CLAIMS ACT
New York State Bar Association President Stephen P. Younger of New
York (Patterson Belknap Webb & Tyler LLP) today commended Governor
David A. Paterson for signing into law legislation (A.11568/S.8378) that
strengthens New York’s False Claims Act.
The New York False Claims Act allows private parties to bring civil
("qui tam") actions on behalf of the state to recover fraudulent
payments and overpayments made to third-party suppliers of goods and
services. The state may intervene in such an action, or allow the action
to proceed as a private lawsuit. The law is modeled on the Federal False
Claims Act, which was amended in 2009 and 2010 as part of the federal
Health Care Reform Act.
“This legislation strengthens the existing New York False
Claims Act by enhancing the state’s ability to obtain financial
recovery for losses suffered due to fraud perpetrated by contractors and
others against the government,” said President Younger. “The
State Bar and its Commercial and Federal Litigation section have long
been strong supporters of the New York False Claims Act. I want to
commend the Governor and the State Legislature for making these
much-needed enhancements to further protect the interests of all New
Yorkers.”
The new legislation signed into law allows “qui tam”
plaintiffs to bring actions for tax fraud, but only when the net income
or sales of the defendant total $1 million or more and the damages
pleaded in the action exceed $350,000. It also strengthens the
protections for whistleblowers -- both private persons and government
employees -- who uncover information concerning the misuse of government
funds.
The legislation will help ensure that the federal government passes
on to New York its share of any recovered funds. The value to the state
of these recoveries is estimated at more than $20 million per year.
To view a copy of President Younger’s letter to the Governor in
support of this legislation, please visit www.nysba.org/falseclaimsactletter.
####
Founded in 1876, the 77,000-member New York State Bar
Association is the official statewide organization of lawyers in New
York and the largest voluntary state bar association in the nation. The
State Bar’s programs and activities have continuously served the
public and improved the justice system for more than 130 years. For more
information, visit us at our website at www.nysba.org.
| 
News Center
