New York Attorney General Recovers $36 Million From H&M Hennes & Mauritz, L.P.

David Koenigsberg and the Firm were co-counsel for whistleblower William S. French in his N.Y. False Claims Act lawsuit that alleged H&M Hennes & Mauritz, L.P. (“H&M LP”) violated New York law by failing to escheat or pay over millions of dollars to New York State in unused gift card balances. In a settlement announced on May 19, 2022 by the Office of the New York Attorney General, H&M LP has agreed to pay $36 million to settle the claims Mr. French brought to the attention of the New York Attorney General’s Taxpayer Protection Unit. The lawsuit alleged that H&M LP had a legal obligation to escheat or turn over unredeemed gift card money to New York State, but instead, H&M LP entered into a sham arrangement with another company to disguise from State authorities the true nature of the funds H&M LP was required to turn over to New York. According to the settlement, Mr. French is to receive an award of 21.5% of the State’s recovery or $7,740,000 pursuant to the qui tam provisions of New York’s False Claims Act. The case is entitled State of New York ex rel. French v. H&M Hennes & Mauritz, L.P. et al., Index 101101/2016 (N.Y. County Supreme Court).