U.S. ex rel. Heath v. Wisconsin Bell, Inc.

Case Updates

The court denied the defendant’s motion to dismiss, on the ground that there is sufficient evidence to allege that the Universal Services Administrative Company administered the Fund at the direction of the Federal Communications Commission, and therefore an agency relationship may exist that requires FCA compliance.

The Chamber filed an amicus brief in this False Claims Act (FCA) case where the Relator and the Government seek an award of damages in favor of the Government (together with a substantial bounty for Relator) for fraud purportedly committed against what all agree is a private company, the Universal Services Administrative Company, involving funds consisting entirely of contributions from other private entities and maintained in the private Universal Services Fund.

The Chamber’s brief, filed in response to the Government’s statement of interest, argues that the position advanced by the Relator and the Government is contrary to the holdings of both of the courts to have addressed the issue and, if adopted, would create inconsistent exposure of FCA liability for businesses, including the Chamber’s members, based on the happenstance of the jurisdiction in which the case is filed.

John P. Elwood, Jeremy C. Marwell, Crystal Y. Stapley, and Ralph C. Mayrell of Vinson & Elkins, LLP represented the U.S. Chamber of Commerce as co-counsel to the U.S. Chamber Litigation Center.