Copycat Suit Against Acquiror of Prior Qui Tam Defendant Barred

When can a relator get two bites at the same FCA apple? This was the question in United States ex rel. Schweizer v. Canon, Inc., where a relator sued one company and then, a few years later, sued its acquiror for purportedly continuing the same alleged misconduct.

Between 2004 and 2005, Schweizer (the relator) worked as a GSA contracts manager for Océ North America, a company that sold printers, copiers, and related services to the government. After leaving the company, Schweizer filed an FCA suit against Océ, alleging that it (1) overcharged the government and (2) sold it non-compliant products manufactured in other countries. The government eventually intervened in the case and, over Schweizer’s objections, settled with Océ in 2009. Canon, Inc. acquired Océ in 2012. In 2016, Schweizer filed a second FCA suit—this time against Canon. In her second suit, Schweizer alleged that Canon continued Océ’s fraud by violating the same GSA contracts at issue in the first FCA suit.

Source:

• Arnold & Porter: Copycat Suit Against Acquiror of Prior Qui Tam Defendant Barred