United States Ex Rel. Hansen v. Cargill, Inc.

MEMORANDUM AND ORDER

This False Claims Act (“FCA”) qui tarn action arises out of the sale by defendant Cargill, Inc. (“Cargill”) of approximately 10,000 acres in the San Francisco North Bay (the “Napa Salt Marshes” or “the Property”) to the State of California (“the State”) for $10 million dollars. Relator Dale Hansen (“Hansen”) alleges that Car-gill made false statements to the California and federal governments by submitting an appraisal that valued the Property at $34 million dollars based on its “public interest value.”

The State and the United States have declined to intervene in this action. Defendants now move to dismiss on the ground that the Court does not have subject matter jurisdiction because the lawsuit is based upon allegations or transactions that were “publicly disclosed” prior to the filing of this action and plaintiff is not an “original source” within the meaning of the FCA. After carefully considering the papers filed by the parties, and having had the benefit of oral argument, the motion to dismiss is GRANTED.

BACKGROUND

In 1990 Hansen founded a non-profit California corporation called “Integrity in Natural Resources.” The purpose of the non-profit is to…