Eleventh Circuit reverses dismissal of a whistleblower action alleging that the new owners of a construction firm fraudulently secured orders under a program for disadvantaged small businesses

The case, Gose, et al. v. Native American Services Corporation, et al., Case No. 23-10600, determined that the failure to disclose the new ownership and control of the firm, which new ownership and control no longer satisfied regulatory standards for inclusion in the SBA program, stated a for fraudulent inducement claim under the False Claims Act.

The case is now to return to the District Court for further proceedings consistent with the Eleventh Circuit's decision.

In my personal opinion, the whistleblower not only has a properly alleged fraudulent inducement claim, but also a false presentment claim under the United States Supreme Court decision in Escobar.