United States ex rel. Pietschner v. Kabbage — Order of Partial Dismissal

Summary

An order in United States ex rel. Paul Pietschner v. Kabbage, Inc., et al., Civil No. 4:21-CV-110-SDJ, in the U.S. District Court for the Eastern District of Texas, Sherman Division, filed June 12, 2024 as Document 31. The order acts on a Joint Stipulation of Partial Dismissal filed by the United States and the relator under Rule 41(a) and the qui tam provisions of the False Claims Act, as to Defendant Kabbage, Inc. only. Consistent with a May 7, 2024 Settlement Agreement, it dismisses with prejudice the United States' claims against Kabbage, Inc. concerning the Covered Conduct, dismisses other claims without prejudice to the United States, and dismisses the relator's claims against Kabbage, Inc. with prejudice to the relator. It unseals the stipulation and order for disclosure to Kabbage, Inc. and its counsel only, keeps other filings under seal, and is signed by Judge Sean D. Jordan.

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Case 4:21-cv-00110-SDJ     Document 31    Filed 06/12/24   Page 1 of 2 PageID #: 239




                       UNITED STATES DISTRICT COURT
                        EASTERN DISTRICT OF TEXAS
                            SHERMAN DIVISION

UNITED STATES OF AMERICA,                 §
ex rel. PAUL PIETSCHNER                   §
                                          §
v.                                        §   CIVIL NO. 4:21-CV-110-SDJ
                                          §
KABBAGE, INC., ET AL.                     §   FILED UNDER SEAL
                                          §   (Pursuant to 31 U.S.C. § 3730(b))

                                      ORDER

       Pursuant to Rule 41(a) of the Federal Rules of Civil Procedure and the qui tam

provisions of the False Claims Act, 31 U.S.C. § 370(b)(1), the United States and

Relator Paul Pietschner (“Relator”) filed a Joint Stipulation of Partial Dismissal of

Relator’s Complaint against Defendant Kabbage, Inc. only. Upon consideration of the

Joint Stipulation of Dismissal as to Defendant Kabbage, Inc. only, and the papers on

file in this action,

       IT IS HEREBY ORDERED that:

       1. Consistent with the terms of the May 7, 2024, Settlement Agreement

executed by the United States, Relator, and KServicing Wind Down Corporation and

the bankruptcy estates of Defendant Kabbage, Inc. d/b/a KServicing (“Kabbage,

Inc.”), all claims asserted on behalf of the United States against Defendant Kabbage,

Inc. concerning the Covered Conduct as defined in Recital Paragraph L of the

Settlement Agreement are dismissed with prejudice




                                          1
Case 4:21-cv-00110-SDJ      Document 31      Filed 06/12/24    Page 2 of 2 PageID #: 240




      2. Any remaining claims asserted by Relator on behalf of the United States in

this action against Defendant Kabbage, Inc. that are not part of the Covered Conduct

are .
   dismissed without prejudice to the United States.

      3. Relator’s claims asserted against Defendant Kabbage, Inc. in this action are

dismissed with prejudice to Relator.

      4. The Joint Stipulation of Dismissal and this Order shall be unsealed, so that

the United States may disclose these documents to Kabbage, Inc. and counsel for

Kabbage, Inc. only. All other filings prior to the date of this Order in this matter shall

remain under seal, except as otherwise ordered by the Court, and not made public.


         So ORDERED and SIGNED this 12th day of June, 2024.




                                                      ____________________________________
                                                      SEAN D. JORDAN
                                                      UNITED STATES DISTRICT JUDGE




                                            2


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