USDA responds to Plaintiffs’ criticism of its Status Report…
On April 22, 2016, the USDA filed a response to Plaintiffs’ brief criticizing the Status Report filed by the USDA.
In its response, USDA claims that Plaintiffs misread the Audit report that was attached as an exhibit to USDA’s Status Report.
USDA asserts that “The [Office of Inspector General] determined that the claims review process for the ADR program was adequate and functioning as prescribed, and that funds were distributed only to eligible applicants.”
USDA also states that Plaintiffs’ contention that many claims were automatically denied for fraud concerns is untrue because “of the roughly 22,000 adjudicated claims, the contractor found over 13,000 claims that possibly fit one of the 176 fraud patterns approved by the Chief Adjudicator, and, ultimately, the Chief Adjudicator denied 10,361 of these claims for a fraud concern.” Therefore, USDA argues, the denial was not automatic.
Finally, USDA notes that the Court does not even have jurisdiction to rule on Plaintiffs’ request for more information because there are no “live” claims left in the litigation since everyone settled or was dismissed.
You can see the Response here: USDA’s Response
You can also find the Audit Report here: OIG Report