Detroit Defeats Bid to Reopen Transportation Funds Fraud Suit

Appeals court affirms dismissal of False Claims Act case against city over transportation funding certifications.

Apr. 10, 2026 at 6:23pm

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A high-end, photorealistic studio still-life photograph featuring a stack of official government documents, a pen, and a calculator on a clean, monochromatic background, conceptually representing the abstract legal and financial complexities of government contracts and fraud claims.A federal appeals court ruling affirms the challenges whistleblowers face in proving fraud against local governments over the use of federal funds.Today in Detroit

The U.S. Court of Appeals for the Sixth Circuit has upheld a lower court's decision to grant summary judgment in favor of the city of Detroit in a False Claims Act lawsuit brought by two whistleblowers. The whistleblowers, Gregory Lynn and Paulette Hamilton, had alleged that Detroit made false certifications to receive transportation funding from the U.S. government.

Why it matters

This case highlights the challenges whistleblowers can face in proving fraud against government entities, even when they believe taxpayer funds have been misused. The appeals court's ruling suggests that forward-looking contractual promises, like the certifications made by Detroit, may not be subject to False Claims Act liability.

The details

The whistleblowers, Gregory Lynn and Paulette Hamilton, are principals of a paratransit services provider called Enjoi Transportation. They alleged that Detroit made false certifications to the U.S. government in order to receive transportation funding. However, the appeals court agreed with the lower court's decision, stating that Detroit's certifications were forward-looking promises that do not constitute fraud under the False Claims Act.

  • The lawsuit was originally filed in 2016.
  • The lower court granted summary judgment for Detroit in 2021.
  • The appeals court affirmed the lower court's decision on April 10, 2026.

The players

Gregory Lynn

One of the whistleblowers who brought the False Claims Act lawsuit against the city of Detroit.

Paulette Hamilton

One of the whistleblowers who brought the False Claims Act lawsuit against the city of Detroit.

Enjoi Transportation

The paratransit services provider owned by the whistleblowers Gregory Lynn and Paulette Hamilton.

City of Detroit

The defendant in the False Claims Act lawsuit, which was accused of making false certifications to receive transportation funding from the U.S. government.

Judge Danny J. Boggs

The judge who wrote the opinion for the U.S. Court of Appeals for the Sixth Circuit, affirming the lower court's decision to grant summary judgment for the city of Detroit.

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What they’re saying

“Future promises are contractual, and don't constitute fraud, the appeals court said.”

— Judge Danny J. Boggs, Judge, U.S. Court of Appeals for the Sixth Circuit

The takeaway

This case highlights the challenges whistleblowers can face in proving fraud against government entities, even when they believe taxpayer funds have been misused. The appeals court's ruling suggests that forward-looking contractual promises, like the certifications made by Detroit, may not be subject to False Claims Act liability.