An attorney representing Western Regional Off-Track Betting Corp. Wednesday called it “a wise decision” by lawyers representing a former chief operating officer at WROTB to seek dismissal of a false claims' lawsuit against current and former directors and senior management.
“That was a wise decision for them to withdraw the lawsuit … because it would have been without merit, and what have faced immediate dismissal motion,” said Aaron Saykin of Hodgson Russ LLP of Buffalo, speaking of a legal action filed in U.S. District Court for the Western District of New York by Michael Nolan.
In July 2021, Nolan filed a false claims act lawsuit against the corporation, naming current and former board members (including Richard Siebert, Genesee County) and senior leaders – claiming WROTB improperly spent public funds on directors’ health insurance, sporting and concert tickets and other management perks.
On Jan. 4 of this year, Western District Court Judge William M. Skretny ruled that a dismissal was in order due to the fact that the court lacks diversity jurisdiction over the claims since Nolan is no longer a resident of Florida. Reportedly, Nolan has moved back to New York.
An affidavit from Nolan’s attorney, Edward Yankelunas of Tiveron Law of Amherst, dated Jan. 3, indicated that “although (Nolan) is not proceeding with the state qui tam action in federal court for the reason stated above (change of residence) and seeks to voluntarily dismiss this action, the plaintiff respectfully reserves the right to (a) proceed with state qui tam action New York State Supreme Court and (b) proceed with the plaintiff’s individual action against WROTB and the other named defendants, which is pending in this court.”
A call to Yankelunas was not returned at the time of the posting of this story.
Saykin said that former State Sen. George Maziarz filed a similar lawsuit in 2022 in Erie County Supreme Court.
“Maziarz’s suit had extremely similar allegations and we moved to dismiss that,” he said. “Before the judge even decided it, the other side withdrew it quickly because we pointed out that it was completely meritless under the False Claims Act.”
Saykin said cases involving the False Claims Act normally are “sued on behalf of the government, and that the Office of the State Attorney General declined to intervene and take the (Nolan) case.”
The court issued a summons to nearly two dozen defendants in May 2023, but those people were not served summonses because, according to Yankelunas’ filing, Nolan’s citizenship changed from Florida to New York, “thereby apparently eliminating diversity jurisdiction.”
Saykin said he views it differently.
“They waited on it for months and months and months and didn’t do anything. I think that tells you everything you need to know about how strongly they felt about it,” he surmised, adding that if Nolan refiles in state court, WROTB will move to dismiss it.
WROTB President/Chief Executive Officer Henry Wojtaszek said the lawsuit was “frivolous and we’re glad it was dismissed.”
Nolan previously filed a wrongful termination lawsuit against his former employer following his firing in December 2020. He is claiming he was let go for sharing information about the company’s policies with federal and state authorities.
He is seeking $14.5 million in compensatory damages plus reinstatement to his former COO position, reinstatement of full fringe benefits and seniority rights, damages sustained due to the violation including, without limitation, the compensation for lost wages, benefits and other remuneration, and payment of all reasonable costs, disbursements, and attorney's fees.
