Law360 Quotes Partner Sarah L. Reid on FCA Lawsuits

Law360 reported that the U.S. government filed a $1.1 billion False Claims Act (FCA) lawsuit against Deutsche Bank AG and one of its closed mortgage units, MortgageIT Inc. “ ​‘I think the government is going to come after financial institutions directly, and they have also sent a signal to the plaintiff-relator bar that these kinds of cases might be of more interest to the government than they have been before,’ said Sarah L. Reid, a partner at Kelley Drye & Warren LLP who specializes in False Claims Act defense.’ ”

The article also quoted Ms. Reid as noting that the case originated from a HUD investigation, instead of the more typical investigation, resulting from a qui tam filing from a private whistleblower. “ ​‘I would not underestimate the fact that the U.S. attorney has more of these cases to file,’ Reid said.”