United States Ex Rel. Tamanaha v. Furukawa America, Inc.

MEMORANDUM

Appellant and Qui Tam Relator Alvin Tamanaha appeals the district court’s dismissal with prejudice of his False Claims Act action. We review a district court’s denial of leave to amend for abuse of discretion, keeping in mind that “such denial is strictly reviewed in light of the strong policy permitting amendment.” Sisseton-Wahpeton Sioux Tribe of Lake Traverse Indian Reservation v. United States, 90 F.3d 351, 355 (9th Cir.1996) (quoting Texaco, Inc. v. Ponsoldt, 939 F.2d 794, 798 (9th Cir.1991)). Finding that the district court abused its discretion in dismissing the action without allowing Tamanaha’s requested leave to amend, we reverse and remand.

Tamanaha alleges that Furukawa submitted materially false information to the United States Customs Service in order to undervalue — and thereby reduce customs duties owed on — imported goods, in violation of the False Claims Act, 31 U.S.C. §§ 3729-3733 (2006). On Furukawa’s motion to dismiss, the district court dismissed Tamanaha’s complaint for failure to state a viable False Claims Act claim under Federal Rule of Civil Procedure 12(b)(6) and for failure to plead fraud with particularity as required by Federal Rule of…