Charter schools are "persons," but cities and public school districts aren't, for the purposes of suing or being sued under the state's False Claims Act. The California Supreme Court made those findings in two long-awaited rulings that clarify which public entities are liable for fraud and which can file qui tam suits to attack deceptive practices. The decisions hurt cities by narrowing their options in pursuing fraud, but help public schools by freeing them from potentially budget-busting lawsuits.
September 05, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
Charter schools are, but cities and public school districts aren’t — “persons,” that is, for the purposes of suing or being sued under the state’s False Claims Act.
The California Supreme Court made those findings Thursday in two long-awaited rulings that clarify which public entities are liable for fraud and which can file qui tam suits — normally brought by individuals — to attack deceptive practices.
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