27 Mar '15, 4pm

Split Decision on Ormat’s Motion to Dismiss Ex-Employees’ Claims of Cash Grant Fraud: The March 24 opinion fr...

Split Decision on Ormat’s Motion to Dismiss Ex-Employees’ Claims of Cash Grant Fraud: The March 24 opinion fr...

Background about the case and the False Claims Act is available in my prior article here . Ormat’s next ground for dismissal was the “public disclosure” rule, which provides that relators (i.e., the ex-employees who brought the case) may not use the False Claims Act to seek recoveries based on information that had been publicly disclosed. This issue was a split decision. Ormat prevailed on two critical issues. First, the allegations as to fraud with respect to the second Cash Grant application for the Brawley plant were dismissed because that application was prepared after one relator had resigned from Ormat and the other was on medical leave. Thus, the two relators were not in a position to be privy to any nonpublic information suggesting a fraud by Ormat. However, the Cash Grant award that resulted from the second application for the Brawley plant was only $13,821,143, w...

Full article: http://www.renewableenergyworld.com/rea/news/article/2015...

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