The 3rd U.S. Circuit Court of Appeals has ruled that county governments cannot be sued under the False Claims Act — also known as the federal whistleblower law — because its mandatory treble damages provision is “punitive” in nature and local governments are immune under the common law from being assessed punitive damages.
“The rationale for exempting a municipal entity from punitive damages awards is firmly grounded in public policy,” U.S. Circuit Judge Carol Los Mansmann wrote in United States ex rel. Anthony Dunleavy.
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