Facts

Realtor Donald Wagda filed an action on behalf of the United States against Bank of America and related entities; Countrywide Home Loans, Inc.; and Countrywide Securities Corporation.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that, based on searches of California's Unclaimed Property Database, defendants escheated federal property of the state of California under California's Unclaimed Property Law. Plaintiff argued that defendants should have returned these properties to the United States, rather than escheating the properties to the state of California. Accordingly, plaintiff brought three claims against defendants under the False Claims Act (FCA): failure to return federal property; knowingly making materially false records and statements; and conspiracy to violate the FCA.

DEFENDANTS' CONTENTIONS: Defendants denied all contentions and argued that plaintiff's complaint must be dismissed because the state of California was a necessary party to the action and had an interest in the property at issue in the action, but it could not be joined because it is not a "person" as defined in the FCA.

Result

The court dismissed the complaint without leave to amend.