For companies in certain business sectors, such as defense contracting and health care, insider-whistleblower lawsuits under the U.S. False Claims Act are a familiar threat. But Pillsbury client Victaulic, the world’s leading producer of mechanical pipe joining solutions, could never have expected to face FCA litigation brought by a “whistleblower” with no connection to the company.
A courtroom victory in September 2014 spared client Victaulic from substantial potential damages—but it also highlighted the novel ways plaintiffs are using the False Claims Act to target companies in industries where FCA lawsuits have previously been rare.
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