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The Case That Started the False Claims Act Revolution Type: False Claims Act
Jack Gravitt broke rank at General Electric
to report to the top General Electric Aircraft Engine executive
a scheme by his co employees and superiors to mischarge time
on government B 1B Bomber engine contracts. Instead of being
commended, he was dicharged. We rediscovered the ancient False
Claims Act in the United States Banking Code, which allowed
Mr. Gravitt to file a qui tam lawsuit on behalf of the United
States. The Department of Justice attempted to make a sweetheart
settlement with General Electric for $234,000. We successfully
opposed the Department of Justice’s efforts. Mr. Gravitt
ultimately reached a settlement of the claims against General
Electric for $3.5 million, a record for a False Claims Act
case.
The Gravitt case was the only pending qui tam action
reviewed and considered by Congress in drafting the modern False Claims Act
in 1986. Mr. Gravitt's courage led to major changes in the law. His six year
court battle at one time or another was before all three levels of the federal
court system (trial, appellate, and Supreme Court) and all three levels of our
federal government (judicial, legislative, and executive). Mr. Gravitt passed
away in 2001. Our False Claims Act treatise is dedicated to him.
Case: United States ex rel. Gravitt v. General Electric
Co. Case No. C‑1‑84‑1610 (S.D. Ohio)