False Claims Act — dismissal

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United States Court of Appeals For the Seventh Circuit

Civil

False Claims Act — dismissal

Where a qui tam claimant alleges that her former employer submitted false financial aid forms, her claim should not have been dismissed.

“Leveski’s case appears to be substantial, not frivolous. Even disregarding the fact that Leveski’s allegations cover a later time period than the Graves allegations, Leveski has still provided the district court with at least two ways in which her allegations substantially differ from the Graves allegations: (1) Graves alleged an outright scheme to violate the HEA incentive compensation ban, in which ITT did not even attempt to feign compliance, and (2) Graves was solely concerned with the ITT recruitment office and had nothing to say about the ITT financial aid office. Moreover, through her affidavit and deposition testimony, Leveski has provided the district court with numerous pieces of evidence both supporting her allegations and demonstrating that her knowledge is direct and independent. At this stage of the litigation, we think that Leveski has produced more than enough to overcome the 31 U.S.C. § 3730(e)(4) jurisdictional bar. We do not know whether Leveski will ultimately prevail, nor do we Nos. 12-1369, 12-1967, 12-1979, 12-2008 & 12-2891 51 state any opinion as to whether Leveski should ultimately prevail. But we do believe that Leveski should be allowed to litigate her case on the merits, and thus, sanctions for bringing a frivolous lawsuit are inappropriate.”

Reversed.

12-1369, 12-1967, 12-1979, 12-2008 & 12-2891 Leveski v. ITT Educational Services, Inc.

Appeals from the United States District Court for the Southern District of Indiana, Pratt, J., Tinder, J.