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Government Contracts
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May 14, 2024
Pa. Justices Vexed By DA Funding In Kleinbard Bill Dispute
The Pennsylvania Supreme Court seemed to want more information Tuesday about the source of the former Lancaster County district attorney's "program funds" before wading into whether the DA had the discretion to spend those funds on Kleinbard LLC's legal fees rather than asking his county commissioners for approval.
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May 13, 2024
Kabbage Inks 2 FCA Deals With Feds Totaling $120M
Bankrupt online lender Kabbage Inc. has agreed to pay $120 million in two separate deals to resolve allegations it submitted thousands of false claims for loan forgiveness and operated without adequate fraud controls in place, the U.S. Department of Justice announced Monday.
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May 13, 2024
Wall Fraud Conviction Affirmed Despite Juror-Prosecutor Tie
The Second Circuit on Monday affirmed the conviction of a Colorado man found to have siphoned online donations meant to fund a Southern border wall, saying the fact that a federal prosecutor had mentored a juror's daughter didn't warrant vacating the conviction.
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May 13, 2024
Construction Co. Says Guatemala Can't Exit $31M Award Suit
A construction and engineering firm has asked a D.C. federal court not to toss its litigation to enforce $31 million in arbitral awards against Guatemala that arose from unpaid public works contracts, saying local courts already denied the country's claim the awards violate domestic law.
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May 13, 2024
Watchdog Nixes Bidder's Protest To Low $159M Air Force Deal
The U.S. Government Accountability Office said an aviation company couldn't question the feasibility of a rival's $159 million U.S. Air Force flight training contract, when the service branch never indicated it would check if bidders' prices were realistic.
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May 13, 2024
E-Rate Requests Aren't FCA Claims, Law Group Tells Justices
The Washington Legal Foundation urged the U.S. Supreme Court to decide whether reimbursement requests for the Federal Communications Commission's E-Rate program are "claims" under the False Claims Act, arguing that a Seventh Circuit ruling that answered in the affirmative threatens wide-ranging consequences beyond the E-Rate program.
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May 13, 2024
Co. Says Typo Wrongly Cost It Shot At $10B Army IT Deal
An information technology firm has urged the Court of Federal Claims to restore its eligibility for a pending $10 billion U.S. Army IT hardware procurement, saying the Army wrongly excluded the company for one missing word in its proposal.
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May 13, 2024
Pa. Supreme Court Snapshot: Kleinbard Bill Battle Starts May
The Supreme Court of Pennsylvania will weigh the spending powers of district attorneys in a Kleinbard LLC bill battle and whether an appeals court overstepped by greenlighting a hospital closure when the May argument lineup begins Tuesday.
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May 13, 2024
Texas, Mo. Say Border Contractors Lack Interests To Defend
Texas and Missouri have slammed contractors' attempts to defend the Biden administration's plans to use border wall construction funds to remediate existing barriers, telling a Texas federal court that the group lacks a direct interest in the case's outcome.
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May 13, 2024
Ex-Pa. City Housing Head Gets 3 Years In Prison For Fraud
The former head of an economically distressed Pennsylvania city's public housing authority was sentenced Monday to over three years in prison for bilking the agency out of $545,000 through a yearslong scheme of submitting inflated contracting bills for housing repairs to line his own pockets.
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May 10, 2024
Navy Defends Retaining Contractor Facing Labor Unrest
The U.S. Navy on Friday rebutted a Federal Circuit judge's suggestion that it might have turned "a blind eye" to a contractor's alleged labor law violations, saying it followed its obligations under procurement law to assess both performance and ethics.
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May 10, 2024
GAO Says DHS Unfairly Assessed Bids On $17M Support Deal
The U.S. Government Accountability Office has backed a protest over a $17.2 million U.S. Department of Homeland Security support services order, saying the agency failed to show its assessment of proposals was reasonable.
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May 10, 2024
Biz Claims Foreign Bribe Needed To Meet Energy Deal's Terms
An aviation fuel company protested the U.S. Defense Logistics Agency's latest effort to supply fuel to military bases in Djibouti, accusing the agency of requiring interested contractors to obtain a license that can, allegedly, only be received through bribery.
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May 10, 2024
UPMC Inks $38M Deal To End Neurosurgery FCA Suit
The University of Pittsburgh Medical Center has agreed to pay $38 million to put an end to a False Claims Act suit brought by three medical workers from its neurological surgery department who said the medical center fraudulently billed federal healthcare programs.
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May 10, 2024
No 'Piecemeal' Fees For Infant Data Win Amid 6th Circ. Appeal
A federal judge said Friday that he wouldn't award attorney fees to children who challenged Michigan's handling of blood samples collected in an infant health screening program until the state's Sixth Circuit appeal is resolved.
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May 09, 2024
3 Engineering Firms Sued Over Pittsburgh Bridge Collapse
Three engineering firms share responsibility with the city of Pittsburgh for the collapse of the Fern Hollow Bridge in 2022, a new lawsuit alleges, claiming the engineers failed to flag how dangerous and deteriorated the bridge was for years before it fell.
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May 09, 2024
3M, Dupont Want Conn. AG's PFAS Suit To Stay In Fed. Court
Stressing their work for the military, 3M Co. and several entities tied to what was once E. I. du Pont de Nemours and Co. have opposed a motion by the Connecticut Attorney General's Office to send a PFAS forever chemicals environmental pollution case back to state court.
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May 09, 2024
11th Circ. Urged To Reconsider Ruling In Cancer Cluster Case
A group of Florida families asked the Eleventh Circuit on Thursday to reconsider its decision affirming a jury verdict that found defense contractor Pratt & Whitney was not liable for a cancer cluster near the company's former rocket testing site, arguing that the panel affirmed a legally deficient verdict form.
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May 09, 2024
Fed. Circ. Judge 'Baffled' By Gov't Args In Boeing Costs Case
An exasperated Federal Circuit judge on Thursday tore into the government's contention that a disputed cost accounting regulation has no bearing on Boeing's claim that the defense contractor was wrongly barred from offsetting multiple simultaneous accounting changes against each other.
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May 09, 2024
Justices Asked To Weigh In On $1.3B India Award Fight
Shareholders of an Indian satellite communications company are pressing the U.S. Supreme Court to clarify the analysis of a highly technical jurisdictional question as they look to revive their bid to enforce a $1.3 billion arbitral award against a state-owned division of India's space agency.
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May 09, 2024
9th Circ. Revives Northrop Retirees' Putative Class Action
The Ninth Circuit on Thursday once again resurrected a proposed class action accusing Northrop Grumman of misinforming retirees about their pension benefits, ruling that the retirees have plausibly alleged that they received inaccurate benefit statements.
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May 09, 2024
Firm Can't Get $99M Deal Reopened After Worker Poached
A consulting firm that lost a $99 million National Archives and Records Administration contract based on a proposed manager's qualifications couldn't convince the U.S. Government Accountability Office that the worker's new employment for the contract winner warranted reconsidering the deal.
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May 09, 2024
Okla. Law Curbing Anti-Oil Pension Fund Investments Blocked
Oklahoma can't enforce a law prohibiting the state pension system from investing in companies that limit oil and gas industry assets, a state judge ruled, finding the retiree leading the suit is likely to succeed on arguments that the statute is vague and violates the state constitution.
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May 09, 2024
Insurer Still Can't Escape Explosion Coverage Row
An insurer cannot yet avoid defending gas companies in personal injury litigation after a subcontractor caused an explosion injuring three people, an Indiana federal court has ruled, reiterating a previous finding that the subcontractor's ultimate release from liability following a settlement has no bearing on the gas companies' additional insured status.
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May 08, 2024
Fuel Truck Exec Cops To Rigging Firefighting Contract Bids
An Idaho fuel truck company executive accused of conspiring with others to manipulate bids for U.S. Forest Service firefighting contracts to suppress other competitors in the market over an eight-year period pled guilty Wednesday in federal court, according to the U.S. Department of Justice.
Expert Analysis
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OIG Report Has Clues For 2024 Healthcare Fraud Enforcement
A recent report from the Health Department's Office of the Inspector General reveals healthcare fraud and abuse enforcement trends that will continue in 2024, from increased telehealth oversight to enhanced policing of managed care, say attorneys at Sheppard Mullin.
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7 E-Discovery Predictions For 2024 And Beyond
The legal and technical issues of e-discovery now affect virtually every lawsuit, and in the year to come, practitioners can expect practices and policies to evolve in a number of ways, from the expanded use of relevancy redactions to mandated information security provisions in protective orders, say attorneys at Littler.
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DOD's Proposed Cyber Rule: What Contractors Must Know
A review of the U.S. Department of Defense's recently published Cybersecurity Maturity Model Certification proposed rule, requiring independent third-party cybersecurity assessments for many defense contractors, suggests that there will be a competitive advantage to prompt demonstration of full compliance with the rule, says Robert Metzger at Rogers Joseph.
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Tips For Contractors Preparing For Potential Gov't Shutdown
With elements of the Congress’ latest continuing resolution expiring on Jan. 19, companies that may be fatigued by preparing for potential shutdown after potential shutdown should consider the current political climate and take specific steps now, say attorneys at Miller & Chevalier.
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2 FCPA Settlements Illuminate Self-Disclosure, Disgorgement
Two of last year’s Foreign Corrupt Practices Act settlements — with biomedical company Lifecore and mining company Corsa Coal — suggest that the government will be much more flexible in negotiating disgorgement amounts if an entity voluntarily self-discloses misconduct, say Michael Gilbert and Lucas Amodio at Sheppard Mullin.
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Opinion
Anti-Kickback Statute Does Not Require But-For Causation
A proper interpretation of the Anti-Kickback Statute clearly indicates that but-for causation is not required for False Claims Act Liability, and courts that hold otherwise will make it significantly easier for fraudsters to avoid accountability, says Kenneth Capesius at Baron & Budd.
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5 Litigation Funding Trends To Note In 2024
Over the next year and beyond, litigation funding will continue to evolve in ways that affect attorneys and the larger litigation landscape, from the growth of a secondary market for funded claims, to rising interest rates restricting the availability of capital, says Jeffery Lula at GLS Capital.
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Lessons From DOJ's Handling Of Rare Medicare Fraud Case
The U.S. Department of Justice's recent indictment against HealthSun sheds light on the relatively rare circumstances in which the agency may pursue criminal charges for fraud involving Medicare Advantage, but its subsequent decision not to prosecute shows that compliance efforts can mitigate penalties, say attorneys at WilmerHale.
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Growing Green Tech Demand Spells Trouble For Groundwater
Increasing demand for green technology is depleting the groundwater reserves used to extract and process the necessary minerals, making a fundamental shift toward more sustainable water use practices necessary at both the state and federal levels, says Sarah Mangelsdorf at Goldberg Segalla.
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What To Know About FCA Cybersecurity Enforcement
Now is a good time for practitioners, government contractors and potential relators to review recent developments in cybersecurity-related False Claims Act enforcement, and consider best practices for navigating this space in the new year, say Ellen London at London & Stout, and Li Yu and Molly Knobler at DiCello Levitt.
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4 Legal Ethics Considerations For The New Year
As attorneys and clients reset for a new year, now is a good time to take a step back and review some core ethical issues that attorneys should keep front of mind in 2024, including approaching generative artificial intelligence with caution and care, and avoiding pitfalls in outside counsel guidelines, say attorneys at HWG.
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What May Define Contract Disputes Act Jurisdiction In 2024
Now is a good time to reflect on how several recent decisions may have limited the government's ability to weaponize jurisdictional prerequisites under the Contract Disputes Act, and how this new direction may affect government contractors and practitioners filing CDA appeals in 2024, say attorneys at Seyfarth.
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What The Law Firm Of The Future Will Look Like
As the legal landscape shifts, it’s become increasingly clear that the BigLaw business model must adapt in four key ways to remain viable, from fostering workplace flexibility to embracing technology, say Kevin Henderson and Eric Pacifici at SMB Law Group.
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4 PR Pointers When Your Case Is In The News
Media coverage of new lawsuits exploded last year, demonstrating why defense attorneys should devise a public relations plan that complements their legal strategy, incorporating several objectives to balance ethical obligations and advocacy, say Nathan Burchfiel at Pinkston and Ryan June at Castañeda + Heidelman.
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The Space Law And Policy Outlook For 2024
Expect significant movement in space law, regulation and policy in 2024, as Congress, the administration and independent federal agencies like the Federal Communications Commission address the increasingly congested, contested and competitive nature of space and the space industry, say Paul Stimers and Leighton Brown at Holland & Knight.