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U.S. ex rel. McSherry v. SLSCO LP

Relators' False Claims Act Lawsuit Is Dismissed With Prejudice; FAC Did Not Cure Defects

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OPINION & ORDER Michael McSherry and Lisa Palma McSherry (“the McSherrys” or “the Relators”) bring this action pursuant to the federal False Claims Act (“FCA”), 31 U.S.C. §3729 et seq., and the New York False Claims Act (“NYFCA”), N.Y. State Fin. Law §187 et seq. I previously granted the City of New York’s motion to dismiss the claims against it, but granted the Relators leave to replead their claim under 31 U.S.C. §3729(a)(1)(A). Op. & Order, ECF No. 41. The Relators filed a First Amended Complaint (“FAC”), ECF No. 46, and now before me is the City of New York’s second motion to dismiss that claim, ECF No. 58. Because the Amended Complaint failed to cure the defects in the original Complaint, I grant the City’s motion and dismiss the claims against the City with prejudice. BACKGROUND After Hurricane Sandy damaged thousands of homes, Congress allocated funds to elevate certain homes vulnerable to similar damage. FAC

31-32. In 2013, the City submitted a plan to the federal government to repair or remediate homes affected by Hurricane Sandy, and the federal Department of Housing and Urban Development (“HUD”) approved that plan. Id.

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