In Law360 Article, Huffman and Wolverton Examine Litigation Risks of Main Street Lending Program
Contact:
Law360 has published the article “The Litigation Risks In Main Street Lending Program,” written by Akin Gump litigation partner Robert Huffman and senior counsel Caroline Wolverton. The article looks at the different forms of legal action that could result from the program (MSLP), which is meant to support lending to small and medium-sized businesses hurt by the COVID-19 pandemic.
Huffman and Wolverton write that lenders and borrowers can avoid some litigation roadblocks by understanding the potential risks “and taking proactive measures to comply with program requirements — and to document their compliance.” They also note that the Department of Justice could help facilitate the objectives of the MSLP “by issuing a policy statement that it will not bring False Claims Act actions against Main Street lenders where borrowers act contrary to their certifications of compliance.” In addition, they say, the dismissal of any qui tam actions against Main Street borrowers and lenders “that lack merit or are contrary to program objectives,” would be consistent with the DOJ’s False Claims Act policies and priorities announced on June 26 for COVID-19-related programs.
To read the article in its entirety, please click here.
People Mentioned in This News
