California Golf Club Defeats Whistleblower's PPP Fraud Claims

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Bighorn Golf Club in Palm Desert, California has won dismissal of a whistleblower's False Claims Act lawsuit that accused the club of fraudulently obtaining a Paycheck Protection Program loan during the COVID-19 pandemic. The court ruled the lawsuit was barred under the FCA's public disclosure provision since the alleged fraud was already publicly reported.

Why it matters

This case highlights the challenges whistleblowers can face in bringing forward claims of PPP loan fraud, as the public disclosure bar can limit lawsuits if the alleged misconduct has already been publicly reported, even if the whistleblower has additional details. It also underscores the scrutiny businesses that received pandemic relief funds are facing.

The details

The whistleblower lawsuit, filed by a company called Relator LLC, accused Bighorn Golf Club of fraudulently obtaining a PPP loan. However, the court ruled the lawsuit was barred under the False Claims Act's public disclosure provision, since the alleged fraud had already been publicly reported on a government oversight website and in a magazine article. The court did not grant the whistleblower leave to amend the complaint.

• The lawsuit was filed in 2026.
• The court issued its dismissal order on February 10, 2026.