Fair Labor Practices Assocs. v. Quest Diagnostics, Inc.

Plaintiff appealed the district court's dismissal of this qui tam action and disqualifying plaintiff, its individual members - including a former general counsel to defendant - and its outside counsel from bringing a subsequent qui tam action on the basis that the suit was brought in violation of the general counsel's ethical obligations under the New York Rules of Professional Conduct. The court concluded that the attorney, through his conduct in this qui tam action, did violate N.Y. Rule 1.9(c) which prohibited lawyers from using confidential information of a former client protected by Rule 1.6 to the disadvantage of the former client. The court held that the district court did not err by dismissing the complaint as to all defendants, and disqualifying plaintiff, its individual relators, and its outside counsel on the basis that such measures were necessary to avoid prejudicing defendants in any subsequent litigation on these facts. View "Fair Labor Practices Assocs. v. Quest Diagnostics, Inc." on Justia Law