Key Industry

Manufacturing

Case Studies

Successful Dismissal of a Multi-Million Dollar False Claims Act Suit

In November 2014, the firm secured a decision from the U.S. Court of Appeals for the Third Circuit affirming summary judgment for our client, a Fortune 500 medical device manufacturer, in a significant False Claims Act (“FCA”) suit. The relator filed a qui tam action accusing our client of fraudulently omitting discounts that had been extended to other commercial customers in its bids to sell ultrasound, magnetic resonance imaging, and other medical equipment to the U.S. Department of Veterans Affairs. After transferring venue to the Eastern District of Pennsylvania and narrowing the case on a motion to dismiss, the firm prevailed on all claims at summary judgment. The relator appealed the decision to the Third Circuit, which held that “the District Court correctly concluded that [the relator] could show none of the required elements” of his FCA claim, and specifically, that “no reasonable juror could conclude that [our client] made knowingly false statements to the VA.”

Dismissal of Lawsuit Against Energy Company

In June 2013, the firm secured the dismissal of allegations brought by a prominent hedge fund against our client, a Fortune 500 energy company. In the 1980’s our client leased an interest in a power plant to a banking and financial services corporation with an option to buy it back. In turn, the financial services corporation sold an interest to a hedge fund. After our client bought back the interest in 2012, the hedge fund sued, alleging flaws in the appraisal process that was used to determine the value of the interest. Our attorneys argued that the energy company’s agreement with the hedge fund barred it from seeking damages. In the end, the Supreme Court of the State of New York agreed with our arguments and dismissed the complaint against our client.

Restructuring of Company and Sale of Business Units

Patterson represented a multinational machine tool maker serving the aerospace, automotive, mining and industrial equipment sectors in the sale of several business units to a European conglomerate. The client intended to retain certain core business lines. Accordingly, the transaction required a restructuring and refinancing of the company and its affiliates, including the splitting of its U.S. operations into two separate subsidiary chains, the transfer of Chinese, Indian and South Korean subsidiaries between the group being sold and the group being retained and additional financing for the client’s European group. The sale required careful coordination with foreign counsel in Germany, Luxembourg, France, Mauritius, India, South Korea and China to balance U.S. foreign tax considerations.