Apple Beats Back Whistleblower Suit Over B-1 Visas

[tacobell fan]

Law360 (March 12, 2019, 11:31 PM EDT) -- A California federal judge on Tuesday nixed a whistleblower’s suit accusing Apple of bringing two trainers from India into the country using B-1 visas instead of the more expensive and necessary H1-B visas, ruling there's "no exhaustive list or case law of all permissible activities" under the B-1. 

In an 18-page order, U.S. District Judge Lucy Koh said the False Claims Act suit from Carl Krawitt, a former contractor for both Apple Inc. and Infosys Technologies Ltd. Inc., should be tossed because there's no evidence the trainers used the incorrect visas. She also said there’s an ambiguity in how the B-1 visa can be used.

“The ambiguity here is in Apple’s and Infosys’ favor,” Judge Koh said. “Apple and Infosys cannot be charged with knowledge or willful blindness to the correct uses of the B-1 visa because there is simply no exhaustive list or case law of all permissible activities under a B-1 visa.”

Krawitt first filed the suit in July 2016, alleging Apple and Infosys conspired to get the two Indian nationals into the country using cheaper business B-1 visas rather than the H1-B visas, which Krawitt claimed should have been used.

According to the suit, Apple paid $50,000 for 16 training sessions from Infosys trainers in 2014. The training was for Apple’s Online Store Engineering Organization. The trainers ended up being sent back to India earlier than planned after an Apple manager said he wasn’t pleased with the training sessions.

Krawitt said in his complaint that he complained to his supervisors over and over again about the trainers’ documentation. Infosys later declined to renew his contract, which he said was retaliation for speaking out. He then ended up working as a contractor for Apple but later failed to get his contract renewed, according to court filings.

In October 2018, Judge Koh dismissed the case with leave to amend, ruling the immigration regulations are unclear on what business activities are covered by a B-1 visa.

Krawitt filed his amended complaint in November. Later that month, Apple and Infosys both filed motions to dismiss.

Judge Koh on Tuesday agreed with Apple’s arguments for dismissing the suit, ruling the training was a permissible use for the B-1 visas.

Krawitt had argued a federal regulation prohibits the trainers from using the B-1 visas because they were part of a contractual agreement. But Krawitt read that regulation too narrowly, Judge Koh said in her decision.

“Numerous authoritative sources contradict Krawitt’s reading of the regulation,” she said. “The [Board of Immigration Appeals] has repeatedly held that foreigners entering pursuant to a contract or a prearrangement may be granted B-1 visas.”

And even if the trainers were wrongly allowed entrance into the U.S., Apple and Infosys didn’t have the intent or knowledge of their wrongdoing to be charged under the False Claims Act, she said. He notified his managers, but that’s not enough, she said.

“Krawitt’s failure to plead an FCA claim is a legal deficiency that cannot be cured with amended factual pleadings because the court held the trainers permissibly entered the United States on B-1 visas, and because the court determined that the immigration laws are not clear as to the permissible uses of a B-1 visa,” Judge Koh said.

Counsel for the parties and representatives for Apple and Infosys didn’t immediately return requests for comment late Tuesday.

Krawitt is represented by John M. Pierce of Pierce Bainbridge Beck Price & Hecht LLP and Jonathan B. Gaskin and Steven S. Kaufhold of Kaufhold Gaskin LLP.

Apple is represented by Christopher E. Babbitt and Michael A. Mugmon of Wilmer Cutler Pickering Hale & Dorr LLP.

Infosys Technologies is represented by Danny S. Ashby and Michelle Park Chiu of Morgan Lewis & Bockius LLP.

The case is Krawitt et al. v. Infosys Technologies Ltd. Inc. et al., case number 5:16-cv-04141, in the U.S. District Court for the Northern District of California.

[tacobell fan]

1 minute ago, tacobell fan said:

According to the suit, Apple paid $50,000 for 16 training sessions from Infosys trainers in 2014. The training was for Apple’s Online Store Engineering Organization. The trainers ended up being sent back to India earlier than planned after an Apple manager said he wasn’t pleased with the training sessions.

Krawitt said in his complaint that he complained to his supervisors over and over again about the trainers’ documentation. Infosys later declined to renew his contract, which he said was retaliation for speaking out. He then ended up working as a contractor for Apple but later failed to get his contract renewed, according to court filings.

corporate world lo brathakadam teliyaledu eediki