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Considerations for Settlement in Virginia Fraud Against Taxpayers Act cases



The issue of settling claims in a non-intervened qui tam case under the Virginia Fraud Against Taxpayer’s Act presents the same sort of thorny issues as settlement in a Federal False Claims Act case.  Most of the differences between settling a false claims case and a typical civil case arise out of the fact that the Commonwealth (or the Department of Justice in a federal case) must approve the settlement in all respects. 

In reviewing and approving settlement agreements, the Commonwealth will and should act to protect its interests in a number of ways, many of which might not be apparent on the face of the statute.  

An excellent memo from the Department of Justice’s Commercial Litigation Branch is a must-read for anyone interested in the VFATA.  The Cook & Kitts, PLLC    

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