Satterlee Stephens Obtains Dismissal of False Claims Act Suit on Behalf of Moody’s


Satterlee Stephens has once again obtained, on behalf of its clients, Moody’s Corporation and Moody’s Investors Service, dismissal of a False Claims Act action brought against Moody’s by one of its former employees, Eric Kolchinsky.  Judge William H. Pauley, Jr. of the Southern District of New York granted Moody’s motion to dismiss Kolchinsky’s Third Amended Complaint on March 13, primarily for failure of the complaint to satisfy the materiality requirements set out by the Supreme Court in Universal Health Services, Inc. v. United States ex rel. Escobar, 136 S. Ct. 1989 (2016).  The court had previously granted Moody’s motion to dismiss in March 2017, but gave the relator one final attempt to replead in conformity with Escobar.  The court has now granted final dismissal with no further leave.  Moody’s is represented in this matter by Satterlee attorneys James J. CosterJoshua M. RubinsGlenn C. EdwardsJames L. DotyJames J. ReganMichael A. Cabin, and Margaret K. O’Leary.