Federal Judge Backs U.S. in Dropping AWS-3 Auction Fraud Suit
U.S. Magistrate Judge Moxila Upadhyaya is recommending granting the federal government's request to drop its suit against Dish Network and designated entities (DEs) Northstar Wireless and SNR Wireless (see 2403040052). In a 38-page report and recommendation submitted to the U.S. District Court for the District of Columbia (docket 15-cv-728), Upadhyaya said that even if Vermont National Telephone arguments against dismissal are credible, they don't outweigh the reasonable arguments the government put forward about why the litigation should be dropped. The U.S. and relator VTel sued, alleging fraud by Dish and the DEs in the FCC's 2015 AWS-3 auction. The U.S. now argues that there's not enough evidence to support VTel's claims, it's unclear VTel can provide damages since Dish and the DEs never received any bidding credits in the auction, and continuing the 10-year-old suit would be a drain on government resources.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
Upadhyaya in the report and recommendation said that while VTel's arguments may be credible, the U.S. Supreme Court's 2023 Polansky decision, which identified when the U.S. can dismiss claims it brought under the False Claims Act, "requires much more from a relator than Vermont has shown here." The judge said the approach VTel is urging the court to take "flies in the face" of Polansky's directive to give the government sizable deference in its motions to dismiss. She said VTel hasn't shown that the government acted in bad faith seeking dismissal. Its theories that the government is seeking dismissal to protect the FCC from institutional embarrassment or that the movement is conspiring with the defendants to end the case lack evidence, Upadhyaya said. The judge's recommendation was dated April 7. An unsealed version was posted this week in the docket. VTel and Dish parent EchoStar didn't comment Thursday.