United States Ex Rel. Newsham v. Lockheed Missiles & Space, Co.

ORDER DISMISSING COUNTERCLAIMS

Plaintiffs Margaret A. Newsham (“Newsham”) and Martin Overbeek Bloem (“Bloem”) are qui tam plaintiffs who have filed suit against Lockheed Missiles and Space Company (“Lockheed”) for alleged fraud and misuse of public funds. Lockheed answered and asserted counterclaims against the qui tam plaintiffs. Plaintiffs move to dismiss the counterclaims on the ground that counterclaims against qui tam plaintiffs are barred as a matter of law. For reasons stated more fully below, the motion to dismiss is GRANTED.

BACKGROUND

Plaintiffs brought suit on behalf of the United States against Lockheed for fraud and misuse of public funds pursuant to the False Claims Act (“FCA”). 31 U.S.C. § 3729 et seq. as amended, Pub.L. No. 99-562,100 Stat. 3153 (1986). Under the FCA, private citizens may bring a civil action on behalf of the United States. 31 U.S.C. § 3730 (b). If the government elects not to proceed with the action, the person who initiated the action has the right to conduct the action. 31 U.S.C. § 3730 (c)(3).

After two unsuccessful attempts to have the complaint dismissed on other grounds, and an unsuccessful petition for interlocutory appeal, Lockheed…