A California insurance agency has been granted leave to amend its complaint in a lawsuit seeking a refund for the Employee Retention Credit (ERC), after a federal court found its initial filing failed to adequately plead that its business was partially suspended due to government COVID-19 orders. (I Health and Life Insurance Services v. United States, No. 25-1315T, 7/23/2026)
Judge Armando O. Bonilla of the U.S. Court of Federal Claims deferred a ruling on the government’s motion for judgment on the pleadings. The court gave I Health and Life Insurance Services until August 6, 2026, to file a new complaint that specifies how government mandates caused a temporary cessation of a discrete and more-than-nominal portion of its business.
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