K&L Gates Secures Victory for Ocean Harvesters in False Claims Act Whistleblower Lawsuit

Global law firm K&L Gates LLP successfully represented Ocean Harvesters, the owner and operator of more than 30 fishing vessels in the Atlantic Ocean and Gulf of Mexico, and related defendants in a qui tam whistleblower lawsuit brought by two relators alleging violations of the False Claims Act. The United States District Court for the Southern District of New York dismissed the lawsuit, which challenged Ocean Harvesters’ compliance with vessel citizenship laws that regulate access to commercial fishing in US waters. The court concluded that the relators did not satisfy the foundational requirement under the False Claims Act to allege that the federal government parted with money or property, ruling that neither fishing licenses nor unharvested fish constitute property for purposes of the statute.

Separately, the court rejected the relators’ so-called reverse False Claims Act argument that Ocean Harvesters was liable for penalties of up to $2 billion. Ocean Harvesters argued that the relators could not pursue these penalties because they were committed to the discretion of industry regulators. In dismissing the relators’ claim, the court determined that “these potential obligations to pay unassessed fines are not within the scope of the [False Claims Act].”

The K&L Gates team representing Ocean Harvesters in this matter was led by Washington, D.C., partners Rob Silverblatt and Andrew Wright, along with senior of counsel Bill Myhre.

“We are pleased that the court rejected these claims, which were at odds with both the text and purpose of the False Claims Act,” Silverblatt remarked. “The requirement that money or property be at issue is central to the statute and provides important safeguards. We believe that this decision properly enforced those guardrails.”

“The decision underscores our commitment to full compliance with federal laws and regulations, and vindicates the integrity of our operations,” said Ben Landry, spokesperson for Ocean Harvesters. “We are grateful to the K&L Gates team for their assistance in bringing this case to a prompt and favorable resolution.”