Phone Recovery Services, LLC v. Verizon of New England, Inc.

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The Supreme Judicial Court held that Phone Recovery Services, LLC (PRS), as a corporation, did not have standing to bring this qui tam action on behalf of the Commonwealth against Defendants, Verizon of New England, Inc. and other communication services providers, under the Massachusetts False Claims Act, Mass. Gen. Laws ch. 12, 5A-50. In its complaint, PRS claimed that Defendants failed to collect from their customers and remit to the Commonwealth the statutorily required surcharge for 911 emergency telephone service and knowingly provided false information to the Commonwealth to avoid certain financial obligations. The superior court allowed Defendants’ motion to dismiss, concluding that the 911 surcharge was not subject to the Act. The Supreme Judicial Court remanded the matter for a judgment dismissing the case for lack of subject matter jurisdiction, holding that PRS had no standing to bring this action because it was not an “individual” for purposes of Mass. Gen. Laws ch. 12, 5A and thus did not qualify as a relator under the Act. View "Phone Recovery Services, LLC v. Verizon of New England, Inc." on Justia Law