Card Compliant LLC and Phillip Rouse Settle Qui Tam Case
Card Compliant LLC Settles Qui Tam Claims
In a significant legal resolution, Card Compliant LLC and Phillip Rouse have agreed to pay a total of $4.375 million to settle allegations related to escheat fraud regarding unused gift cards. This settlement comes more than eight years after whistleblower William S. French filed a lawsuit under the New York False Claims Act.
Details of the Allegations
The allegations claimed that Card Compliant LLC and H&M Hennes & Mauritz, L.P. had a legal responsibility to escheat unclaimed gift card balances to the state but failed to do so. Instead, it was alleged that they devised a plan to retain these funds by entering an agreement with CardFact LTD that did not reveal the true nature of the funds.
Impact of the Settlement
The total settlements of $40.375 million, including a $36 million settlement by H&M LP, may represent one of the largest successful cases under the False Claims Act concerning escheat obligations. Dan Miller, lead counsel from Walden Macht Haran & Williams LLP, expressed pride in achieving this settlement on behalf of Mr. French, highlighting the extensive effort involved in unraveling the case.
Continuing Efforts Against Escheat Fraud
Mr. French’s legal battles are part of a broader attempt to address corporations' compliance with escheat laws, which are designed to protect consumer funds. The case was filed as State of Delaware ex rel. William S. French v. Card Compliant, LLC et al., and according to Mr. Miller, it embodies a landmark victory for whistleblowers in similar situations.
Acknowledgments
Miller acknowledged the roles of various attorneys, including Laura Jereski from the New York Attorney General's Office, for their hard work that led to this historic outcome. Collaboration with co-counsel was also crucial in navigating the complexities of the case.
Whistleblower Practice Group Recognition
Walden Macht Haran’s whistleblower practice group is well-known for its success in qui tam lawsuits, having recovered over $3 billion for state and federal treasuries. Led by Miller and Jon DeSantis, their team has tackled cases that were initially declined by the government, underscoring their commitment to holding companies accountable.
Frequently Asked Questions
What is the lawsuit about?
The lawsuit involves allegations that Card Compliant LLC and Phillip Rouse failed to escheat unclaimed gift card funds as legally required, leading to a settlement.
How much is the settlement?
Card Compliant LLC and Phillip Rouse have agreed to pay a settlement of $4.375 million.
Who was the whistleblower?
The whistleblower in this case is William S. French, who filed the lawsuit under the False Claims Act.
What does the settlement signify?
This settlement is seen as a landmark victory against escheat fraud, contributing to efforts to uphold consumer protection laws.
Who are the attorneys involved?
Dan Miller from Walden Macht Haran & Williams LLP is the lead counsel, supported by other notable attorneys including Jon DeSantis.
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