Exhibit 2 — No. 1:24-cv-00196-PLM-RSK (Dkt. 23-2, W.D. Mich.)
Summary
In this memorandum, filed 01/03/25 as ECF No. 23-2 in Case 1:24-cv-00196-PLM-RSK in the Western District of Michigan, the United States supports its unopposed ex parte application to partially lift the seal in a False Claims Act qui tam suit brought by relator GNGH2 Inc. against HORN USA, Inc. The relator alleges that HORN USA fraudulently applied for and received a Paycheck Protection Program loan for which it was not eligible because it exceeded the employee cap and had significant operations in China. The government asks leave, at its discretion, to disclose the case, the complaint and the order to the defendant and its counsel, with the case otherwise under seal through the intervention deadline of November 4, 2024. The memorandum is dated August 27, 2024, submitted by U.S. Attorney Mark A. Totten and Assistant U.S. Attorney Whitney M. Schnurr, and says the relator concurs.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Full text
Text recognized from a scanned document; may contain errors. Page 1 of 5 is not shown because the text could not be recognized reliably.
Case 1:24-cv-00196-PLM-RSK ECF No. 23-2, PagelD.75 Filed 01/03/25 Page2of5 COPY - Filed -GR UNITED STATES DISTRICT COURT —- Aust 27, 2024 10:00 AM WESTERN DISTRICT OF MICHIGAN WESTEGN ose COU RCHIGAN SOUTHERN DIVISION BV-KLB UNITED STATES OF AMERICA ex Case No. 1:24-cv-196 rel. GNGH2 Inc., Plaintiff-Relator, Hon. Paul L. Maloney USS. District Judge Vv. HORN USA, Inc., FILED EX PARTE AND UNDER SEAL / MEMORANDUM OF LAW IN SUPPORT OF THE UNITED STATES OF AMERICA’S EX PARTE APPLICATION FOR PARTIAL LIFTING OF THE SEAL The United States of America submits this Memorandum in support of its unopposed ex parte application for a partial lifting of the seal in this case. This application is submitted so that, at the discretion of the United States, the United States may disclose the existence and nature of this case, the Complaint, and the Court’s order granting this application to the Defendant in this qui tam action and its counsel. Relator concurs in this request. DISCUSSION Under the False Claims Act, 31 U.S.C. § 3730(b), qui tam complaints are filed under seal so that the United States has “an adequate opportunity to fully evaluate the private enforcement suit and determine both if the suit involves matters the Government is already investigating and whether it is in the Government's interest Case 1:24-cv-00196-PLM-RSK ECF No. 23-2, PagelD.76 Filed 01/03/25 Page3of5 to intervene and take over the civil action.” See S. Rep. 99-345, 99th Cong., 2d Sess., reprinted in 1986 U.S.C.C.A.N. 5266, 5289. As a result, the seal the False Claims Act imposes in 31 U.S.C. § 3731(b)(2) prevents the United States from advising defendants about the existence of a pending qui tam action against them, including during attempts to reach a resolution, without a court order allowing for a partial lifting of the seal. The United States therefore requests that this case be partially unsealed in order to permit the United States, at its discretion, to disclose the existence of this case, Relators Complaint, the allegations in the Complaint, and the Court's order granting this application to Defendant in this gui tam action and its counsel. Relator alleges that Defendant violated the False Claims Act by fraudulently applying for and receiving a Paycheck Protection Program loan for which it was not eligible because it exceeded the employee cap and had significant operations in China. Relator filed the Complaint in camera and under seal and the Court has granted the United States until November 4, 2024 to elect to intervene. Case 1:24-cv-00196-PLM-RSK ECF No. 23-2, PagelD.77 Filed 01/03/25 Page4of5 The requested disclosures are in the interests of justice and judicial economy. CONCLUSION The United States respectfully requests that the Court partially lift the seal to permit the United States to advise Defendant of the existence of this qui tam suit and provide a copy of the Relators Complaint and the Court's order partially lifting the seal to Defendant and its counsel. The United States further requests that this case and its filings otherwise remain under seal through the current intervention deadline of November 4, 2024, and through any extended intervention deadlines granted by the Court. The Court is respectfully referred to the proposed Order filed with this application. Relator concurs in this request. Case 1:24-cv-00196-PLM-RSK ECF No. 23-2, PagelD.78 Filed 01/03/25 Page5of5 Dated: August 27, 2024 Respectfully submitted, MARK A. TOTTEN United States Attorney WHITNEY M. SCHNURR Assistant United States Attorney U.S. Attorney’s Office Western District of Michigan P.O. Box 208 Grand Rapids, MI 49503 Tel: (616) 456-2404 E-mail: Whitney.Schnurr@usdoj.gov
File and source
- File
- gov.uscourts.miwd.110916.23.2.pdf
- Size
- 109,879 bytes
- SHA-256
- cb1f12fd3a423026282281ba6c9cac9e77206faecbfeb863255ca3882c6cbe59
- Original
- archive.org