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Government Contracts
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August 28, 2024
CVS Can't Avoid Federal Claims In $200M FCA Suit
A former CVS Health compliance director can pursue claims the company and its subsidiaries pocketed more than $200 million in overpayments, after an Illinois federal judge on Monday tossed several other claims from a qui tam suit alleging various schemes by CVS to take money from the government.
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August 28, 2024
Contractor Drops Fed. Circ. Challenge To Registration Rule
The federal government and a joint venture on Wednesday agreed to end a Federal Circuit appeal that questioned whether the U.S. State Department unfairly disqualified the company from a security contract over its failure to register on the contracting database.
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August 28, 2024
Cooley, Latham Steer Defense Co.'s $80M VC Funding Round
Parry Labs announced Wednesday that the Virginia-based defense technology company, represented by Cooley LLP, has raised $80 million in its first institutional investment round fueled by Capitol Meridian Partners, represented by Latham & Watkins LLP, and other venture capital firms.
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August 28, 2024
Mont. Hospital Pays $11M In FCA Case For Doc's Fake Billing
Nonprofit healthcare center St. Peter's Health will pay nearly $11 million to settle alleged False Claims Act violations stemming from conduct by a former oncology doctor who submitted fraudulent claims to government programs for up-coded cancer treatment services and who double-billed office visits to boost his own salary, according to the U.S. Attorney's Office for the District of Montana.
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August 28, 2024
Atlanta's Ex-CFO Gets 3 Years For 'Triple-Dipping' In Coffers
Atlanta's former chief financial officer became the latest city hall official to head to prison on corruption charges Tuesday, after getting hit with a three-year prison sentence for what prosecutors called a "triple-dipping" scheme into city coffers to pay for swanky vacations and illegal firearms.
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August 28, 2024
Conn. Dental Practices Settle False Claims Case For $1.7M
Three dental practices in Connecticut and their owners have paid a $1.7 million settlement after federal and state authorities accused them of using an illegal patient recruiting tactic and paying kickbacks that ripped off Medicaid.
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August 28, 2024
Top Gov't Contracts Cases To Watch In The 2nd Half Of 2024
Federal courts in the latter half of 2024 are expected to scrutinize a strict federal registration requirement for contractors and decide whether whistleblower False Claims Act cases are constitutional, potentially affecting a key federal anti-fraud tool. Here, Law360 previews key disputes that government contractors should have on their radar in the second half of the year.
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August 27, 2024
Navy Shipbuilder Pleads Guilty To Accounting Fraud
A shipbuilder that contracts with the U.S. Navy pled guilty Tuesday to accounting fraud as part of a settlement to resolve criminal and civil investigations.
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August 27, 2024
Bank Seeks To End Claims It Mismanaged Treasury Program
A bank is seeking to permanently dismiss a suit accusing it of misleading an investor about its oversight of a U.S. Department of Treasury contract, saying despite amending its case three times, the investor hasn't connected any sustained stock loss to contract issues.
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August 27, 2024
Admiral Seeks Bribery Trial Separate From Contractors
A retired U.S. Navy admiral accused of accepting bribes from two contractors is pushing a Washington, D.C., federal court to sever his trial from theirs, saying the pair appeared poised to pin any alleged misconduct on him.
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August 27, 2024
Return Of Venezuela Sanctions Reignites Criminal Probes
Criminal investigations into Venezuela-related sanctions violations appear to be ramping back up since the U.S. government reimposed crushing trade penalties on the South American country's oil and gas sectors in response to an allegedly sham presidential election, according to experts.
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August 27, 2024
US Arrests Hungarian Suspected Of Sending Radios To Russia
The U.S. Department of Justice announced criminal charges against a Hungarian national suspected to have run a multinational procurement network designed to help Russia obtain U.S. military-grade communications technology.
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August 27, 2024
Top Gov't Contract Cases Of 2024: Midyear Report
Courts and appeals boards have decided several consequential cases impacting government contractors this year, including determining whether software end-user licenses are procurement contracts and weighing in on when companies can protest alleged violations of a federal preference for commercial items. Here, Law360 looks back at the top government contracts-related rulings in 2024 so far.
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August 26, 2024
LA To Pay $38.2M In FCA Suit Alleging Inaccessible Housing
The city of Los Angeles will pay $38.2 million to settle allegations it knowingly failed, for over a decade, to ensure federally funded affordable multifamily housing properties were accessible to people with disabilities, the U.S. Department of Justice announced Monday.
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August 26, 2024
Army Corps Looks To Trim Claims In Alaskan Gold Mine Row
The U.S. Army Corps of Engineers has told an Alaska federal judge that most of the claims asserted by a small village that's trying to thwart an open pit gold mine can't be supported and should be dismissed.
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August 26, 2024
Tetra Tech Accuses Atty Of Mistreating Witness In FCA Row
Tetra Tech EC Inc. claimed that an attorney representing a developer accusing it of fraud had mistreated a witness during a deposition hearing, pressing a California federal court to order the release of recordings capturing the alleged misconduct.
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August 26, 2024
GAO Rejects EY Protest Over $108M DOD Accounting Deal
The U.S. Government Accountability Office has denied Ernst & Young LLP's protest over a $107.8 million accounting services deal in support of U.S. Transportation Command, awarded to KPMG LLC, finding that the agency reasonably evaluated both companies' proposals.
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August 26, 2024
11th Circ. Won't Revive JPMorgan Chase Whistleblower Suit
The Eleventh Circuit on Monday refused to revive a whistleblower suit against JPMorgan Chase Bank NA for allegedly forging mortgage loan documents and submitting false reimbursement claims to Fannie Mae and Freddie Mac, finding the allegations had already been publicized prior to the lawsuit.
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August 26, 2024
RTX Settles Bearing Co.'s Trade Secrets Suit On Eve Of Trial
Defense contractor RTX Corp. on Monday settled claims that it passed a Connecticut roller bearing manufacturer's sensitive design drawings to a competitor, averting a trial set to begin this week.
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August 26, 2024
Wild Ga. Horses Need Aid During Suit's Limbo, Advocates Say
As a Georgia federal judge considers whether to scuttle a lawsuit alleging that a herd of feral horses on one of the state's coastal islands has been neglected and mistreated by federal authorities, the equine plaintiffs have asked the court to order the government to furnish them with emergency stores of food and drinking water.
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August 26, 2024
NY Nursing Homes Can't Duck AG's $83M Fraud Suit
A New York judge shot down a bid by four nursing homes and their operators to dismiss the state attorney general's claims that they defrauded Medicare and Medicaid and neglected residents.
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August 26, 2024
Gov't Contracting Policies To Watch In The 2nd Half Of 2024
An overhaul to the U.S. Department of Defense's cybersecurity requirements and a pending rule requiring many contractors to report their greenhouse gas emissions headline a slate of significant policy initiatives for government contractors to watch for during the second half of this year. Here, Law360 previews four upcoming policy changes with significant potential impacts on government contractors.
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August 23, 2024
VA Says It Properly Assessed Bids For $22B IT Deal
The U.S. Department of Veterans Affairs has told the Court of Federal Claims that it had no obligation to consider potential future conflicts of interest involving contractors added to a $22.3 billion information technology contract, pushing back against allegations that it should have disqualified awardees.
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August 23, 2024
Transport Co.'s Union Pushback Flouted Law, Judge Says
A company that transports migrant children and families from facilities at the U.S.-Mexico border violated federal labor law through its pushback on a union drive, which included interrogating a worker about his union sympathies and later suspending him, a National Labor Relations Board judge ruled Friday.
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August 23, 2024
737 Max Families Spurn DOJ, Boeing's 'Cozy' Plea Deal
Families of victims of the 737 Max 8 crashes told a Texas federal judge on Friday that the U.S. Department of Justice's "cozy" plea agreement with Boeing must be rejected because it's based on misleading facts and shoddy math that overlook the tragic deaths of 346 people.
Expert Analysis
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Bid Protest Spotlight: Conflict, Latent Ambiguity, Cost Realism
In this month's bid protest roundup, Markus Speidel at MoFo examines a trio of U.S. Government Accountability Office decisions with takeaways about the consequences of a teaming partner's organizational conflict of interest, a solicitation's latent ambiguity and an unreasonable agency cost adjustment.
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Think Like A Lawyer: Forget Everything You Know About IRAC
The mode of legal reasoning most students learn in law school, often called “Issue, Rule, Application, Conclusion,” or IRAC, erroneously frames analysis as a separate, discrete step, resulting in disorganized briefs and untold obfuscation — but the fix is pretty simple, says Luke Andrews at Poole Huffman.
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Valeant Ruling May Pave Way For Patent-Based FCA Suits
The Ninth Circuit’s recent ruling in Silbersher v. Valeant marks a significant development in False Claims Act jurisprudence, opens new avenues for litigation and potentially raises the stakes for patent applicants who intend to do business with the government, say Joshua Robbins and Rick Taché at Buchalter.
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How Firms Can Ensure Associate Gender Parity Lasts
Among associates, women now outnumber men for the first time, but progress toward gender equality at the top of the legal profession remains glacially slow, and firms must implement time-tested solutions to ensure associates’ gender parity lasts throughout their careers, say Kelly Culhane and Nicole Joseph at Culhane Meadows.
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7 Common Myths About Lateral Partner Moves
As lateral recruiting remains a key factor for law firm growth, partners considering a lateral move should be aware of a few commonly held myths — some of which contain a kernel of truth, and some of which are flat out wrong, says Dave Maurer at Major Lindsey.
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Series
Cheering In The NFL Makes Me A Better Lawyer
Balancing my time between a BigLaw career and my role as an NFL cheerleader has taught me that pursuing your passions outside of work is not a distraction, but rather an opportunity to harness important skills that can positively affect how you approach work and view success in your career, says Rachel Schuster at Sheppard Mullin.
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Unpacking The New Russia Sanctions And Export Controls
Although geographically broad new prohibitions the U.S., U.K. and EU issued last week are somewhat underwhelming in their efforts to target third-country facilitators of Russia sanctions evasion, companies with exposure to noncompliant jurisdictions should pay close attention to their potential impacts, say attorneys at Shearman.
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Args In APA Case Amplify Justices' Focus On Agency Power
In arguments last week in Corner Post v. Federal Reserve, the U.S. Supreme Court justices paid particular importance to the possible ripple effects of their decision, which will address when a facial challenge to long-standing federal rules under the Administrative Procedure Act first accrues and could thus unleash a flood of new lawsuits, say attorneys at Snell & Wilmer.
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Mitigating Whistleblower Risks After High Court UBS Ruling
While it is always good practice for companies to periodically review whistleblower trainings, policies and procedures, the U.S. Supreme Court’s recent whistleblower-friendly ruling in Murray v. UBS Securities helps demonstrate their importance in reducing litigation risk, say attorneys at Arnold & Porter.
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A Cautionary Tale On Hospital-Physician Alignment Structures
A $345 million settlement between the U.S. Department of Justice and Community Health Network highlights how quickly hospital and physician alignment relationships can violate legal restrictions on such dealings, and the onerous financial penalties that can ensue, say Robert Threlkeld and Elliott Coward at Morris Manning.
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Contract Disputes Recap: The Terms Matter
Stephanie Magnell and Zachary Jacobson at Seyfarth examine recent decisions from the U.S. Civilian Board of Contract Appeals, the Armed Services Board of Contract Appeals and the U.S. Court of Federal Claims, which offer reminders about the importance of including contract terms to address the unexpected circumstances that may interfere with performance.
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6 Pointers For Attys To Build Trust, Credibility On Social Media
In an era of information overload, attorneys can use social media strategically — from making infographics to leveraging targeted advertising — to cut through the noise and establish a reputation among current and potential clients, says Marly Broudie at SocialEyes Communications.
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Opinion
Biden Admin's March-In Plan Would Hurt Medical Innovation
The Biden administration's proposal to reinterpret the Bayh-Dole Act and allow the government to claw back patents when it determines that a commercialized product's price is too high would discourage private investment in important research and development, says Ken Thorpe at the Rollins School of Public Health.
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A Post-Mortem Analysis Of Stroock's Demise
After the dissolution of 147-year-old firm Stroock late last year shook up the legal world, a post-mortem analysis of the data reveals a long list of warning signs preceding the firm’s collapse — and provides some insight into how other firms might avoid the same disastrous fate, says Craig Savitzky at Leopard Solutions.
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How DOD Can Improve Flexibility Under Proposed Cyber Rule
The U.S. Department of Defense should carefully address some of the more nuanced aspects of the Cybersecurity Maturity Model Certification program to avoid unintended consequences, specifically the proposal to severely limit contractor use of plans of actions and milestones, say Joshua Duvall at Maynard Nexsen and Sandeep Kathuria at L3Harris Technologies.