stapleton knaggs dismiss

7/26/2019 Stapleton Knaggs Dismiss

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IN THE UNITED STATES DISTRICT COURTFOR THE DISTRICT OF COLUMBIA

UNITED STATES ex rel.FLOYDLANDIS,

Plaintiffs,

v.

TAILWIND SPORTS CORPORATION,et al.,

Defendants.___________________________________

)))))))))))))

No. 10-cv-00976 (CRC)

JOINT STIPULATION OF DISMISSAL

Relator Floyd Landis (Relator) and Defendants Capital Sports and

Entertainment Holdings, Inc., William Stapleton and Barton Knaggs (collectively the

CSE Defendants or Defendants) submit this Joint Stipulation of Dismissal, pursuant to

the settlement agreement entered into on December 10, 2014 by Relator, the Law Offices

of Paul D. Scott, P.C. (Relators Counsel), and the CSE Defendants (the Settlement

Agreement), a copy of which is attached hereto as Exhibit A.

JOINT STIPULATION

WHEREAS, Relator filed this qui tamaction under the federal False Claims Act

on behalf of the United States on June 10, 2010, filed a First Amended Complaint on

December 23, 2010, and filed a Second Amended Complaint on February 22, 2013

(collectively the Action).

WHEREAS the Action alleges that the CSE Defendants caused to be submitted

and conspired to submit false claims and reverse false claims to the United States in

connection with the United States Postal Services sponsorship of the USPS Pro Cycling

Team, and the CSE Defendants deny all such allegations and claims.

Case 1:10-cv-00976-CRC Document 253 Filed 12/18/14 Page 1 of 5


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WHEREAS, the Government has not intervened in the Action as to the CSE

Defendants.

WHEREAS, Relator and the CSE Defendants negotiated in good faith and

reached an agreement in principle resolving all of Relators claims against the CSE

Defendants.

WHEREAS, following their agreement in principle Relator and the CSE

Defendants communicated the terms of the agreement to the United States Department of

Justice.

WHEREAS, in preparing settlement documents, Relator and the CSE Defendants

have sought to incorporate, where possible, the standard provisions included in False

Claims Act settlements entered into by the United States Department of Justice.

WHEREAS, Relator and the CSE Defendants have executed the Settlement

Agreement attached as Exhibit A, a copy of which was provided to the United States on

December 11, 2014.

WHEREAS, the United States Department of Justice has not stated whether or not

it approves of the Settlement Agreement as of the date of this stipulation.

WHEREAS, the Parties propose to provide the United States with 43 days within

which to further review the Settlement Agreement and to approve or object to its terms.

WHEREAS, the Settlement Agreement provides that the CSE Defendants shall

pay the United States $500,000.00 (Five Hundred Thousand Dollars) and that Relator and

the CSE Defendants each release certain claims against each other as set forth in the

Settlement Agreement. SeeSettlement Agreement, Exhibit A at III (1), (5), (6).

WHEREAS, the Settlement Agreement represents a fair and reasonable resolution

of the claims in the Action.

WHEREAS, 31 U.S.C. 3730(d)(2) provides that the Relator shall also receive

an amount for reasonable expenses which the court finds to have been necessarily

incurred, plus reasonable attorneys fees and costs.



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WHEREAS, in the more than four and a half years of this litigation, according to

Relators counsel, they have reviewed and produced thousands of pages of documents;

reviewed thousands of pages of documents produced by the CSE Defendants and others;

contracted for, set up, and maintained an electronic repository for the review and coding

of documents; engaged in extensive investigative work and legal research; responded to a

motion to dismiss filed by the CSE Defendants; jointly with the United States drafted and

filed a motion to strike the affirmative defenses of defendants, including the CSE

Defendants; prepared numerous memos and briefing papers for the United States

regarding the legal and factual matters relating to the Action; drafted and responded to

written discovery; drafted meet and confer correspondence, engaged in meet and confer

conferences, and prepared summary discovery motions; participated in numerous in-

person and telephonic conferences with government personnel responsible for the Action

and with counsel for the CSE Defendants; conferred with and advised their client and

worked with him to respond to discovery requests; and ultimately negotiated a settlement

of this False Claims Act litigation as it relates to the CSE Defendants.

WHEREAS, the Settlement Agreement provides that the CSE Defendants shall

pay Relators Counsel $100,000.00 (One Hundred Thousand Dollars) to cover a portion

of the reasonable attorneys fees and costs incurred by Relators counsel during the more

than four and a half years of litigation of this matter.

WHEREAS, the Settlement Agreement expressly does not seek to release, and

reserves, specific civil, administrative, and criminal claims of the United States. See

Exhibit A at III (11).

WHEREAS, the Settlement Agreement provides that the CSE Defendants may

not seek to charge the United States or otherwise seek reimbursement from the United

States for payments provided for in the Settlement Agreement or the costs incurred in

investigating, litigating, and settling the Action. SeeSettlement Agreement, Exhibit A at

III (14).



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WHEREAS, given the delay, uncertainty, inconvenience, and expense of

protracted litigation of the Action, Relator and the CSE Defendants agree the Settlement

Agreement is fair, adequate, and reasonable under all the circumstances.

WHEREAS, when the Government does not intervene in a qui tamaction during

the period provided for in 31 U.S.C. 3730(b)(b), the relator retains the right to conduct

the action. 31 U.S.C. 3730(b)(4)(B) & 3730(c)(3).

THEREFORE, Relator and the CSE Defendants, by and through their counsel of

record, hereby stipulate to the following:

1. Pursuant to Federal Rule of Civil Procedure 41(a) and 31 U.S.C.

3730(b), subject to the consent of the United States or subject to notice and a

reasonable opportunity for the United States to be heard on or before January 30, 2015

with any objections to the Settlement Agreement or dismissal, and subject to the approval

of this Court, Relator dismisses the Second Amended Complaint against the CSE

Defendants with prejudice as to the Relator and the United States.

2. Upon the condition that the Settlement Agreement is approved by the

Court, Relator and the CSE Defendants shall have no liability to each other for their costs

and attorneys fees with respect tothe Action except as specifically provided for in the

Settlement Agreement. Relator and his counsel retain the right to seek from the other

defendants in the Action all expenses, legal fees and costs incurred in connection with the

Action, which are not being paid under the Settlement Agreement.

3. The Court shall retain jurisdiction to enforce the terms of the Settlement

Agreement and to resolve, pursuant to 31 U.S.C. 3730(d), any disputes regarding

Relators statutory share from the United States, which disputes may be raised with the

Court by motion.

4. This Stipulation does not dismiss any claims against any of the defendants

in the Action with the exception of the CSE Defendants.

IT IS SO STIPULATED.



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Dated: December 18, 2014 Respectfully submitted,

/s/ John P. Pierce___________John P. Pierce (D.C. Bar No. 475101)THEMIS PLLC2305 Calvert Street, NWWashington, DC 20008(202) 567-2050Telephone(202) [email protected]

Marc S. Harris (pro hac vice)SCHEPER KIM & HARRIS LLP601 West Fifth Street, 12th FloorLos Angeles, CA 90071-2025(213) 613-4655Telephone(213) [email protected]

Attorneys for Capital Sports andEntertainment Holdings, Inc., WilliamStapleton and Barton Knaggs

__________ /s/________________Paul D. [email protected] State Bar No. 145975AdmittedPro Hac Vice

___________/s/________________Lani Anne [email protected] State Bar No. 189889U.S.D.C. No. PA0045Jon L. PraedU.S.D.C. No. 450764D.C. Bar No. 51665LAW OFFICES OF PAUL D.SCOTT, P.C.Pier 9, Suite 100San Francisco, California 94111Tel: (415) 981-1212Fax: (415) 981-1215

Attorneys for Relator Floyd Landis



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Case 1:10-cv-00976-CRC Document 253-1 Filed 12/18/14 Page 1 of 16


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stapleton knaggs dismiss

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