Facts

Gwen Thrower was an underwriter for Academy Mortgage Corp., a Utah-based mortgage company. Thrower filed suit against Academy Mortgage under the False Claims Act which allows private parties to file lawsuits on behalf of the United States, allowing them to receive a portion of any recovery.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that defendant violated the U.S. False Claims Act by improperly issuing mortgages insured by the Federal Housing Administration. She asserted that from January 2008 through April 2017, defendant's underwriting process steered employees to disregard Fair Housing Act rules and falsely certify compliance with underwriting requirements, causing the government to pay insurance claims on improperly-underwritten loans. Among other actions, defendant falsely certified, in those years, that it had complied with FHA regulations.

DEFENDANT'S CONTENTIONS: Defendant denied all contentions, noting that the settlement was a business decision to mitigate additional costs and further litigation disruptions. Importantly, there had been no determinations of liability and the settlement resolved claims that were only allegations.

Result

The case settled with defendant agreeing to pay $38.5 million with Thrower to receive $11,511,500 as her share of the proceeds.