The Case Is Gone — But the Questions Aren't

On Thursday, May 21, 2026, U.S. District Judge Kristi H. Johnson of the Southern District of Mississippi formally dismissed a lawsuit accusing billionaire brothers Tommy and Jim Duff of improperly obtaining more than $6.7 million in Paycheck Protection Program loans during COVID-19.

No trial. No verdict. No settlement. Just gone.

What Was Actually Alleged

The lawsuit was originally filed under seal in 2024 in the U.S. Northern District of California by Relator LLC — a limited liability company formed by California attorneys Anoush Hakimi and Peter Shahriari, according to the U.S. Department of Justice.

The complaint accused the Duffs of submitting "falsified loan documents" to the Small Business Administration, essentially alleging they "looted the government" through a program designed for small businesses. The Duffs, according to Raw Story's reporting of Mississippi Today's original story, have a combined estimated net worth of $7 billion — built largely through Southern Tire Mart, the nation's largest truck tire dealer, and Duff Capital Investors, the largest privately held business in Mississippi with stakes in more than 20 companies.

Two billionaires were accused of using a small-business relief program designed to keep struggling operations alive during a global pandemic.

How It Died

The case was transferred from California to Mississippi in March 2026 after the Duffs' legal team successfully moved it. Just over two months later — it was dropped.

On May 15, attorney Kristen Nelson, representing the California attorneys, filed a voluntary dismissal with prejudice. Judge Johnson signed off on May 21.

Baxter Kruger — the U.S. Attorney for the Southern District of Mississippi, appointed by President Trump in 2025 — said Deputy Attorney General Todd Blanche consented to the dismissal. Kruger's stated reason: the case was "commensurate with the public interest" and "did not justify continued use of government resources," according to the Daily Signal.

Kruger also asked Judge Johnson to keep all sealed documents in the case under seal. She granted that too.

The Winning Side's Take

Matthew Miller, attorney for the Duffs, called it a "complete and total victory" and slammed the California attorneys as trial lawyers who "recklessly" filed a "frivolous and unfounded case" hoping to cash in on a settlement, the Daily Signal reported.

"The PPP loans were lawfully obtained, fully disclosed and reviewed by banks, the SBA and federal attorneys," Miller said in an earlier statement to Mississippi Today.

The Duffs' legal team had long argued the lawsuit was the product of plaintiffs scraping public data to find targets — not genuine whistleblowers with inside knowledge of fraud.

The Losing Side's Non-Answer

Nelson's dismissal filing stated clearly: "The dismissal is not the result of any settlement or payment, and no party has paid or agreed to pay any consideration in connection with the dismissal."

It also said the factual claims themselves did NOT factor into the decision to dismiss. According to DeSoto County News, Nelson did NOT respond to requests for comment. Local Mississippi counsel Grafton Eric Bragg said he wasn't authorized to speak.

So: the attorneys who brought the case won't explain why they walked away. The government says it wasn't worth the resources. And all the sealed documents stay sealed.

Comparable Cases Show Active Enforcement

Raw Story's original April 2026 coverage played this straight as a "billionaire GOP power broker" story — heavy on the political framing of Tommy Duff as a likely gubernatorial candidate. That's relevant context.

The Duffs' attorneys have a legitimate point about who brought this case. Relator LLC wasn't a whistleblower employee with firsthand knowledge. It was an LLC formed by California trial lawyers to pursue False Claims Act litigation — a business model operating within the law, but distinct from a civic mission. The False Claims Act allows private parties to file on the government's behalf and collect a cut of any recovery. When the DOJ declines to intervene and the plaintiffs still push forward, courts have increasingly looked skeptically at those cases.

PPP fraud enforcement is still very much alive. According to the False Claims Act Blog, in September 2025, settlements totaling nearly $4.5 million were reached against an automotive parts manufacturer in the Northern District of Mississippi (same state, different defendants) and a North Carolina roofing company — both for violating employee-count affiliation rules. Those cases were brought by relators with specific legal theories and actual data. The difference: those cases had teeth. The Duff case apparently did not — at least not enough for the DOJ to bother fighting for it.

The Sealed Documents Problem

One substantial issue remains largely unexamined: the sealed records stay sealed.

The public has no insight into what evidence existed, why it was compelling enough to file, or what changed. The Trump-appointed U.S. Attorney consented to the dismissal AND the sealing. Tommy Duff is reportedly eyeing the Mississippi governor's race.

A lot of politically convenient outcomes are stacking up in one case.

Maybe the Duffs are completely clean. Their attorney says they followed the law under the guidance of legal and accounting professionals, and no court ever said otherwise. That's a real defense.

But when the government won't litigate, the plaintiffs won't explain themselves, and the records stay locked away — the public doesn't get to know either way.

What Remains Unknown

Two billionaires walked away from a $6.7 million federal fraud lawsuit without paying a dime, without a trial, and with the court files locked up. The DOJ under a Trump-appointed official decided it wasn't worth pursuing. The American taxpayers who funded those PPP loans will never find out whether that was the right call.