Simpson Thacher Obtains Dismissal with Prejudice of False Claims Act Suit Against Deutsche Bank
On March 31, 2014, U.S. District Judge Gonzalo P. Curiel dismissed a lawsuit brought by two San Diego activists alleging that AIG, Goldman Sachs, Deutsche Bank, Societe Generale and Merrill Lynch defrauded the federal government of some $137 billion as a result of the AIG bailout and the subsequent government intervention in equity markets in late 2008. In his opinion, Judge Curiel rejected the False Claims Act suit, holding that the plaintiffs had relied on publicly disclosed information and failed to show they were the original source of the information. Additionally, the Court found that the plaintiffs failed to remedy the previously identified pleading failures. Because plaintiffs were unable to correct the jurisdictional and pleading deficiencies despite adding over 140 pages of allegations, the Court concluded that it "cannot conceive of additional facts that would support Relators’ claims." Accordingly, Judge Curiel dismissed the complaint with prejudice and entered judgment in favor of the defendants.
The Simpson Thacher team included Bryce Friedman.