Moseley v. Town of Palmer Lake.

2026 COA 78. No. 25CA2019. Colorado False Claims Act—Qui Tam—Municipalities—Person.

October 29, 2026

Plaintiffs Moseley and Brodzik, acting as relators on behalf of the State of Colorado (collectively, relators), sued the Town of Palmer Lake (the town), alleging that the town knowingly submitted false claims to the State to obtain public funds, which the town then misappropriated. The town moved to dismiss. The district court concluded that (1) public entities such as the town are exempt from liability under the Colorado False Claims Act (CFCA), so the relators failed to state a plausible claim for relief; and (2) alternatively, the town did not waive immunity under the Colorado Governmental Immunity Act for “the tort theories” underlying the relators’ claim, so the court lacked subject matter jurisdiction. The court granted the motion.

On appeal, relators argued that the district court erred by concluding that a municipality is not a “person” subject to liability under the CFCA. The CFCA authorizes qui tam lawsuits against persons who commit fraud upon the State of Colorado. The court of appeals determined, for the first time, that a municipality is excluded from the definition of “person” under CRS § 24-31-1202(7) of the CFCA, because the General Assembly intended municipalities to be considered governmental entities. Accordingly, the district court properly dismissed the plaintiffs’ complaint against the Town of Palmer Lake because it is not a “person” subject to liability under the CFCA.

The judgment was affirmed.