Baron & Budd Obtains Record Settlement in Restaurant Revitalization Fraud Lawsuit Against CoreLife Eatery, LLC

A whistleblower, represented by Baron & Budd, came forward with information about the fraudulently obtained grant money.

WASHINGTON--(BUSINESS WIRE)--Today, the national law firm Baron & Budd announced a record $7.8 million settlement in a whistleblower lawsuit brought under the False Claims Act against CoreLife Eatery, LLC for defrauding the Restaurant Revitalization Fund (RRF). This is the largest RRF settlement under the False Claims Act to date.

The RRF was established in 2021 as part of the American Rescue Plan Act to provide financial assistance to restaurants and other food-service businesses during the COVID-19 pandemic. However, businesses that owned or operated more than 20 locations as of March 13, 2020 were not eligible for the funding.

As part of the settlement, CoreLife acknowledged that, on March 13, 2020, CoreLife and its affiliates owned and operated 29 restaurants across five different states. Nevertheless, CoreLife applied for and received an RRF grant for nearly $4 million after certifying that it did not own or operate more than 20 locations.

“The RRF was designed to funnel aid to small restaurant businesses that otherwise could not survive the COVID-19 pandemic,” said Baron & Budd attorney Noah Rich. “When large restaurant chains and other ineligible applicants received this assistance instead, they kept small businesses from receiving vital relief.”

The federal government has made the prosecution of these cases a priority and needs whistleblowers to come forward with information about RRF fraud. This type of fraud harmed small business owners struggling to keep their businesses operational during the pandemic. Often, whistleblower suits are the only way in which this fraud is uncovered, investigated, and punished.

Whistleblowers who have information about RRF fraud may bring lawsuits under the False Claims Act (FCA). Whistleblowers can receive a monetary award for a successful enforcement action. Under the FCA whistleblower program, whistleblowers are afforded certain confidentiality and anti-retaliation protections. It is important to seek the counsel of a whistleblower attorney in these cases.

For more information, visit www.becomeawhistleblower.com.

About Baron & Budd, P.C.

Baron & Budd, P.C. is among the largest and most accomplished plaintiffs’ law firms in the country. With more than 40 years of experience, Baron & Budd has the expertise and resources to handle complex litigation throughout the United States. As a law firm that takes pride in remaining at the forefront of litigation, Baron & Budd has spearheaded many significant cases for hundreds of public entities and tens of thousands of individuals. Since the firm was founded in 1977, Baron & Budd has achieved substantial national acclaim for its work on cutting-edge litigation, trying hundreds of cases to verdict and settling tens of thousands of cases in areas of litigation as diverse and significant as dangerous and highly addictive pharmaceuticals, defective medical devices, asbestos and mesothelioma, wildfires, environmental contamination, fraudulent banking practices, e-cigarettes, motor vehicles, federal whistleblower cases, and other consumer fraud issues.