Whistleblower Aidan Forsyth filed the qui tam action against Marlette Services Inc., which operates as Best Egg Services LLC, along with Marlette Funding LLC and Cross River Bank. The lawsuit was initially filed under seal in 2024, as is standard practice in False Claims Act cases to allow the government time to investigate potential fraud allegations and decide whether to join the litigation.
Judge Cecchi ordered that the complaint be unsealed and served on defendants, while keeping other court documents sealed. The court noted that the United States had declined to intervene under the False Claims Act provision 31 U.S.C. ยง 3730(b)(4)(B). Despite not intervening, the government retains significant oversight rights, including the ability to 'intervene in this action, for good cause, at any time and may seek the dismissal of the relator's action or claim,' according to the order.
The case follows typical False Claims Act procedure, where whistleblowers file complaints under seal to give the Department of Justice time to investigate. The government had approximately 60 days to review the allegations and decide whether to take over the case. The decision not to intervene means Forsyth can proceed as a private plaintiff but must share any recovery with the government.
The unsealing allows the case to proceed publicly, though the court maintained strict requirements for ongoing government notification. All future pleadings, motions, depositions, appeals and settlement discussions must be shared with the United States. The order also requires both parties to obtain written government consent before any dismissal or settlement can be approved.