Allegations of False Claims Act Violations Dropped After Court Dismisses Complaint in Case Involving Translators for US Military in Afghanistan

WASHINGTON, DC – OCTOBER 21, 2010 – Arent Fox won a major victory in the defense of its client Language Learning Enterprises, Inc. (LLE) in a False Claims Act lawsuit filed by a former employee of another company – Mission Essential Personnel (MEP) – that serves as a contractor for the US military to provide language proficiency testing and pre-deployment screening of linguists who work with American troops serving in Afghanistan. Arent Fox’s client LLE was a subcontractor to MEP in its work in Afghanistan.

Following Arent Fox’s motion to dismiss and after US District Judge Leonie Brinkema issued an order dismissing the complaint against LLE, the former MEP employee, Paul Funk, abandoned any further claims against Arent Fox’s client.

Funk’s original suit had alleged MEP, his former employer, and its subcontractors (including LLE) had defrauded the US government by providing unqualified linguists who did not meet the language competency skills required by the military as outlined in the government contract.

Specifically, Funk’s complaint claimed the defendants “engaged in a fraudulent scheme, prepared and submitted false records, and made numerous false claims to the United States in connection with its receipt of hundreds of millions of dollars from the United States for providing purportedly qualified linguists to aid the United States in ongoing military operations and war efforts.”

Funk stood to pocket millions of dollars in making these allegations against the defendants. Under the False Claims Act, a private citizen is permitted to sue individuals or entities for fraud on behalf of the federal government (known as a “qui tam” case). If the defendant is found to have committed fraud or the case settles, the individual who filed the suit (referred to as a “relator” in False Claims cases) is entitled to be paid a percentage of the damages awarded.

Arent Fox moved to dismiss the suit against LLE, noting in its memorandum in support of the motion:

In his 71-paragraph Amended Complaint, Relator does not allege a single act undertaken by Defendant LLE that would violate the False Claims Act. In broad strokes, Relator attempts to impart liability on LLE by suggesting that LLE was somehow part of a scheme to pass applicants who otherwise failed language proficiency screening examinations so that MEP would obtain additional monies from the United States through the Contract. These allegations simply are not true and are not supported by the facts set forth in the Complaint. LLE has not violated the False Claims Act.

“Thus, the Relator’s Amended Complaint should be dismissed in its entirety against LLE,” Arent Fox wrote.

Judge Brinkema of the US District Court for the Eastern District of Virginia agreed, and on September 23 dismissed all claims against LLE. Last week, when filing a Second Amended Complaint against MEP, the Relator dropped all claims against Arent Fox’s client.

“We are enormously pleased with the outcome,” said Arent Fox partner Maurice Bellan, who led the defense team. “As we stated emphatically in our motion to dismiss, Language Learning Enterprises did not engage in any improper activities. None of the allegations against LLE were true. Our client is proud of the work it has done in support of the US military’s efforts in Afghanistan.”

Arent Fox associate Jackson D. Toof, the other member of the defense team, said, “Based on the facts and the strength of our arguments made in the motion to dismiss, it was very clear that LLE should never have been named in this suit. Judge Brinkema recognized this when she dismissed the complaint against LLE. Eventually, even the Relator realized that he did not have any legitimate claims against our client and appropriately did not name LLE as a defendant in his Second Amended Complaint.”

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About Arent Fox:
Arent Fox LLP (www.arentfox.com), with offices in Washington, DC, New York City and Los Angeles, is a recognized leader in areas including intellectual property, real estate, telecommunications, health care, automotive, sports, white collar, international trade, bankruptcy, and complex litigation. With more than 350 lawyers nationwide, Arent Fox has extensive experience in corporate securities, financial restructuring, government relations, labor and employment, finance, tax, corporate compliance, and the global business market. The firm represents Fortune 500 companies, government agencies, trade associations, foreign governments and other entities.