Court narrows whistle-blower lawsuits

March 30, 2010 at 12:20 PM
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WASHINGTON, March 30 (UPI) -- The U.S. Supreme Court ruled 7-2 Tuesday to make it harder for individuals to file suits under the federal False Claims Act, which targets misspent tax money.

The act makes it possible for whistle-blowers to file suit against companies that misspend federal money, then get part of the money recovered. The Supreme Court said suits under the act are barred if information used in the whistle-blower complaints came from state or local agencies' reports or audits, SCOTUSblog.com reported.

The case involved a suit filed by a whistle-blower who alleged fraud in flood cleanup efforts in two North Carolina counties.

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