Plaintiff/Relator Chagolla brings this action on behalf of herself and the State of Nevada against Defendant Lyft, Inc. to recover damages and civil penalties arising from Lyft’s concealment and avoidance of its obligation to pay the employer’s share of unemployment taxes to the State of Nevada and/or the Nevada Department of Employment, Training, and Rehabilitation (“DETR”) in violation of the Nevada False Claims Act, NRS 357.010, also known as a qui tam action. Plaintiff’s Complaint alleges that Defendant Lyft violated the Nevada False Claims Act by failing to properly report and pay taxes due to the State of Nevada, giving rise to a “reverse false claim.”
Plaintiff/Relator contends Lyft is liable to the State of Nevada for all unpaid unemployment taxes for herself and all other Lyft Drivers, trebled, plus civil penalties for each violation of the Act, attorneys’ fees, costs, and all other remedies available under the law.
The District Court held that the question of whether Plaintiff/Relator has properly brought a reverse False Claims Act case against Lyft for failure to pay unemployment taxes is a question of first impression in Nevada and that it presents important and potentially broad public policy ramifications. Thus, the Supreme Court of Nevada has agreed to hear the case, and a briefing schedule is still pending. The Supreme Court of Nevada Case No. is 90906.
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