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Government Contracts
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October 01, 2024
Water Firm Can't End Flint Children's Negligence Claims
The federal judge presiding over Flint, Michigan, water crisis litigation again ruled on Tuesday that an engineering firm won't be able to avoid professional negligence claims related to its consulting work with the city, issuing the 70-page opinion days before jury selection for a bellwether trial begins.
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October 01, 2024
Military Contractor's Widow Can Continue Death Benefit Suit
A widow's pursuit of $670,000 in benefits following her husband's death in Afghanistan while training the country's police force can continue, an Illinois federal judge ruled, trimming claims against the man's employers and benefits administrators but leaving her breach of contract claim against an insurer intact.
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October 01, 2024
Steward Can't Be Forced To Reassign Contract In Ch. 11
While a government contractor was within its rights to end a subcontracting agreement with embattled hospital group Steward Health, the Bankruptcy Code's provisions for assignment of contracts mean the debtor can't be compelled to reassign the agreement while in Chapter 11, a Texas bankruptcy judge said Tuesday.
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October 01, 2024
Big Banks Urge Panel To Toss NJ Bond Marketing Claims
A New Jersey state judge erred when he applied a recent change in state law to deny a bid by JPMorgan Chase & Co. and other big banks to toss a suit accusing them of a scheme to inflate the interest rates of certain bonds, the banks argued Tuesday before a state appellate panel.
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October 01, 2024
Mass. Hospital To Pay Up To $6.5M In Sober Home Scheme
A Massachusetts behavioral health hospital will pay up to $6.5 million to resolve claims it illegally steered Medicare and Medicaid patients to its outpatient substance abuse programs with a promise of free sober home housing, according to a settlement announced Tuesday.
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October 01, 2024
Nostrum Labs Hits Ch. 11 A Year After Medicaid Settlement
Nostrum Laboratories, a New Jersey drugmaker that paid millions to settle allegations that it underpaid Medicaid drug rebates for its bladder infection drug after it hiked the price more than 400%, filed for Chapter 11 protection with nearly $68.3 million in debt.
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October 01, 2024
'Unsworn' Actors Sink Qui Tam Provision, Fla. Judge Rules
A Florida federal judge on Monday ruled that the provision of the False Claims Act allowing whistleblowers to bring suits on behalf of the federal government is unconstitutional, dismissing a closely watched Medicare Advantage fraud case and potentially upending a key federal enforcement tool.
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September 30, 2024
Wheeling & Appealing: The Latest Must-Know Appellate Action
The year's spookiest month is looking scary-good for appellate aficionados, as famed oral advocates joust in October over net neutrality and Uber's extraordinary bid to unravel multidistrict litigation — just two of the high-profile arguments previewed in this edition of Wheeling & Appealing. October also begins with former President Jimmy Carter turning 100, and we'll test your knowledge of his profound impact on the judiciary.
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September 30, 2024
Plane Parts Exec Loses Appeal In Honeywell Fraud Case
The Second Circuit refused Monday to free the president of an airplane parts supplier from a seven-year prison sentence over a $15 million fraud on Honeywell International Inc., rejecting his protest over evidence admitted for consciousness of guilt.
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September 30, 2024
DC Judge Won't Allow Single Trial In Admiral's Bribery Case
A D.C. federal judge Monday denied the government's motion to reconsider a decision severing a retired Navy admiral's bribery trial from that of the defense contractors he is accused of steering federal contracts toward, reiterating a previous ruling that the court can split the case if consolidation appears to prejudice the parties.
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September 30, 2024
DOE Plutonium Pit Plan Found To Violate Environmental Law
A South Carolina federal judge on Monday backed antinuclear groups' challenge to a U.S. Department of Energy plan to boost production of plutonium cores used in nuclear weapons, saying the DOE hadn't properly considered the potential environmental impact of the plan.
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September 30, 2024
Feds Seek Prison In Tax Case Linked To 'China Initiative'
Prosecutors have asked a Texas federal judge for an 18- to 24-month prison sentence for a Chinese-born engineer who pled guilty to tax crimes after being charged with export violations and fraud in a case the defense claims began as an espionage investigation under the U.S. Department of Justice's now-disbanded "China Initiative."
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September 30, 2024
$143M Seattle Tunnel Insurance Suit Settles Midtrial
A Seattle construction contractor that claimed it was wrongly denied more than $143 million in coverage for damage to a massive tunneling machine has settled its case against insurers, the parties told a Washington state judge Monday on the second day of a jury trial.
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September 30, 2024
Red States Urge Justices To Take Up $15 Min. Wage Dispute
Conservative-led states told the U.S. Supreme Court that President Joe Biden's administration misused the Procurement Act when it hiked federal contractors' hourly minimum wage to $15, throwing their support behind two outdoor groups hoping to overturn a Tenth Circuit ruling in favor of the federal government.
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September 30, 2024
Climate Analytics Co. Seeks Ch. 11 With Up To $50M In Debt
BAWT Enterprises LLC, the New Hampshire-based parent company of climate data analytics firm Athenium Analytics, filed for Chapter 11 protection in Delaware in hopes of quickly confirming its prepackaged plan to hand ownership of the reorganized company to its creditors.
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September 27, 2024
New Orleans Inspector Indicted For Bribing Top City Official
A New Orleans resident and his home inspection company were indicted in Louisiana federal court Friday on charges that he operated a yearslong scheme of taking bribes to let unlicensed electricians work on hundreds of homes and bribing top city officials to look the other way.
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September 27, 2024
Kappos' Bayh-Dole Warning To Clients Draws Debate
An advocate for lowering drug prices squared off Friday against a former U.S. Patent and Trademark Office director about the potential risk of accepting government funds to develop drugs, as part of a discussion at New York University School of Law.
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September 27, 2024
Acadia To Pay $19.9M For Alleged Inpatient Billing Scheme
Acadia Healthcare will pay $19.85 million to settle allegations it billed false claims to the federal government for medically unnecessary behavioral health services provided to patients who weren't even eligible for treatment, the U.S. Department of Justice announced.
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September 27, 2024
Fed. Circ. Urged To Block Gov't Bid To Rehear AI Deal Dispute
An artificial intelligence company has asked the Federal Circuit not to revisit a high-profile decision reviving the firm's protest over its exclusion from a National Geospatial-Intelligence Agency procurement, saying the original ruling fit within the circuit court's precedent.
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September 27, 2024
Sen. Says Contractors Trying To Block DOD 'Right-To-Repair'
Sen. Elizabeth Warren, D-Mass., has chided defense contractors for seeking to "sabotage" efforts to require them to cough up parts and data allowing the U.S. Department of Defense to repair its own equipment, while urging the DOD to take action on related restrictions.
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September 27, 2024
Why Many Drugs Remain Pricey 40 Years After Hatch-Waxman
In the four decades since Congress passed the Hatch-Waxman Act in an effort to make generic drugs more available, the pharmaceutical industry has used patent thickets, "evergreening" and pay-for-delay tactics to block competition and keep prices of life-saving specialty drugs astronomical, several legal experts told Law360, while the industry argues other parties shoulder more of the blame.
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September 27, 2024
GAO Says DOE Could Save Billions On Hanford Waste Plan
A government watchdog said in a report Friday that the U.S. Department of Energy should heed experts who say the agency could save billions of dollars by distinguishing between high- and lower-level waste at the Hanford Nuclear Site in Washington, one of the biggest cleanups in the world.
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September 27, 2024
Fed. Circ. Won't Revive $5.9M CMS Contingency Fee Suit
The Federal Circuit on Friday refused to revive a contractor's $5.9 million dispute over a Medicare recovery audit task order, saying the Centers for Medicare and Medicaid Services reasonably terminated the deal and didn't owe the company any more money.
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September 27, 2024
Ex-Conn. Police Chief Drops Atty Fee Ask After Lawsuit Win
The former police chief in Newington, Connecticut, dropped his demand for attorney fees after defamation claims against him were dropped and a state court judge ordered that, in order to collect, his lawyer may have to testify at an upcoming hearing.
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September 27, 2024
GAO Backs DOD Rebuke To Bidder's Spreadsheet Mistake
The U.S. Government Accountability Office backed the Pentagon's decision to deny a spot on a $4 billion deal for combating weapons of mass destruction to a contractor that submitted an incorrect spreadsheet, saying the Pentagon wasn't required to fix the mistake.
Expert Analysis
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A Vision For Economic Clerkships In The Legal System
As courts handle increasingly complex damages analyses involving vast amounts of data, an economic clerkship program — integrating early-career economists into the judicial system — could improve legal outcomes and provide essential training to clerks, say Mona Birjandi at Data for Decisions and Matt Farber at Secretariat.
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Pay-To-Play Deal Shows Need For Strong Compliance Policies
The U.S. Securities and Exchange Commission, through its recent settlement with Wayzata, has indicated that it will continue stringent enforcement of the pay-to-play rule, so investment advisers should ensure strong compliance policies are in place to promptly address potential violations as the November elections approach, say attorneys at WilmerHale.
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Opinion
Feds' Biotech Enforcement Efforts Are Too Heavy-Handed
The U.S. Department of Justice's recent actions against biotech companies untether the Anti-Kickback Statute from its original legislative purpose, and threaten to stifle innovation and undermine patient quality of care, say attorneys at Ropes & Gray.
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E-Discovery Quarterly: Recent Rulings On Text Message Data
Electronically stored information on cellphones, and in particular text messages, can present unique litigation challenges, and recent court decisions demonstrate that counsel must carefully balance what data should be preserved, collected, reviewed and produced, say attorneys at Sidley.
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'Fat Leonard' Case Shows High Bar For Rescinding Guilty Plea
Prosecutors’ recent move in the “Fat Leonard” bribery case, supporting several defendants’ motions to withdraw their guilty pleas, is extremely unusual – and its contrast with other prosecutions demonstrates that the procedural safeguards at plea hearings are far from enough, says Sara Kropf at Kropf Moseley.
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How New Rule Would Change CFIUS Enforcement Powers
Before the May 15 comment deadline, companies may want to weigh in on proposed regulatory changes to enforcement and mitigation tools at the disposal of the Committee on Foreign Investment in the United States, including broadened subpoena powers, difficult new mitigation timelines and higher maximum penalties, say attorneys at Venable.
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Series
Swimming Makes Me A Better Lawyer
Years of participation in swimming events, especially in the open water, have proven to be ideal preparation for appellate arguments in court — just as you must put your trust in the ocean when competing in a swim event, you must do the same with the judicial process, says John Kulewicz at Vorys.
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Mid-2024 FCA Enforcement And Litigation Trends To Watch
Reviewing notable False Claims Act trends and enforcement efforts in the last year and a half reveals that healthcare is a key enforcement priority for the U.S. Department of Justice, and the road ahead may bring clarification on Anti-Kickback Statute causation and willfulness standards, along with increased focus on private equity, cybersecurity and self-disclosure, say attorneys at Epstein Becker.
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What 100 Federal Cases Suggest About Changes To Chevron
With the U.S. Supreme Court poised to overturn or narrow its 40-year-old doctrine of Chevron deference, a review of 100 recent federal district court decisions confirm that changes to the Chevron framework will have broad ramifications — but the magnitude of the impact will depend on the details of the high court's ruling, say Kali Schellenberg and Jon Cochran at LeVan Stapleton.
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Don't Use The Same Template For Every Client Alert
As the old marketing adage goes, consistency is key, but law firm style guides need consistency that contemplates variety when it comes to client alert formats, allowing attorneys to tailor alerts to best fit the audience and subject matter, says Jessica Kaplan at Legally Penned.
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Series
Walking With My Dog Makes Me A Better Lawyer
Thanks to my dog Birdie, I've learned that carving out an activity different from the practice of law — like daily outdoor walks that allow you to interact with new people — can contribute to professional success by boosting creativity and mental acuity, as well as expanding your social network, says Sarah Petrie at the Massachusetts Attorney General’s Office.
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Think Like A Lawyer: Follow The Iron Rule Of Trial Logic
Many diligent and eager attorneys include every good fact, point and rule in their trial narratives — spurred by the gnawing fear they’ll be second-guessed for leaving something out — but this approach ignores a fundamental principle of successful trial lawyering, says Luke Andrews at Poole Huffman.
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Unpacking The Interim Vet-Owned Small Biz Verification Rule
Government contractors that intend to bid for service-disabled veteran-owned small business set-aside contracts should immediately consider the potential impacts of a recently issued rule that specifies how contracting officers will verify that they have certified their status, say Derek Mullins and Beth Gotthelf at Butzel.
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The Art Of Asking: Leveraging Your Contacts For Referrals
Though attorneys may hesitate to ask for referral recommendations to generate new business, research shows that people want to help others they know, like and trust, so consider who in your network you should approach and how to make the ask, says Rebecca Hnatowski at Edwards Advisory.
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McKesson May Change How AKS-Based FCA Claims Are Pled
The Second Circuit’s analysis in U.S. v. McKesson, an Anti-Kickback Statute-based False Claims Act case, provides guidance for both relators and defendants parsing scienter-related allegations, say Li Yu at Dicello Levitt, Ellen London at London & Stout, and Erica Hitchings at Whistleblower Law.