Government Contracts False Claims Act Defense

Our False Claims Act experience and track record successfully defending companies in the government contracts and logistics space is unmatched. We have defended allegations focused on issues including fraud in the inducement; failure to meet contractual or regulatory requirements; pricing errors, overcharging or improper timekeeping; kickbacks and gratuities/Anti-Kickback Act violations; defective products/services; defective pricing/truthful cost or Pricing Data Act (formerly TINA) violations; and management of government property. Our FCA attorneys are familiar with the Federal Acquisition Regulation and applicable regulatory regimes, but when needed, we work closely with attorneys in the firm's top-ranked Government Contracts practice to provide comprehensive and practical legal advice. Our FCA team also handles parallel proceedings in administrative proceedings so our clients do not need two sets of outside counsel.

Read our blog for insightful commentary and the latest news on FCA recoveries as they happen.
Qui Notes Blog

Experience Highlights

  • Kellogg Brown & Root (KBR) in qui tam action in which, after dismissal by trial court and reversal by circuit court, the Supreme Court ruled 9-0 in favor of KBR that Wartime Suspension of Limitations Act does not suspend the statute of limitations for civil fraud actions, including the FCA. Kellogg Brown & Root Services, Inc., et al., v. US, ex rel. Carter, 575 US 650 (2015). The case was dismissed on remand and dismissal was affirmed on appeal. US ex rel. Carter v. Halliburton Co., et al., 866 F.3d 199 (4th Cir. 2017), cert denied, 86 U.S.L.W. 3638 (US June 25, 2018).
  • Fluor Corporation in persuading DOJ to decline intervention, after an extensive investigation, in a qui tam action brought by multiple relators relating to the management of hundreds of millions of dollars-worth of materials on a contingency contract performed in Afghanistan (DSC 2018).
  • KBR in persuading the DOJ to voluntarily dismiss its DOJ-initiated FCA case where DOJ alleged contractor defrauded the government by paying a Request for Equitable Adjustment of $50 million and then seeking government reimbursement under a cost contract. US v. Kellogg Brown & Root Services, Inc., et al., No. 4:12-cv-4110 (CD Ill. 2017).
  • KBR in successful defense of FCA, fraud and Anti-Kickback Act case alleging more than $1.5 billion in damages. We won dismissal of the FCA claim prior to trial. After trial, the court found for KBR on all claims except one that resulted in low value settlement. All fraud rulings have been affirmed on appeal. Kellogg Brown & Root Services, Inc. v. US, 99 Fed. Cl. 488 (2011), aff'd, 728 F.3d 1348 (Fed. Cir. 2013), opinion corrected on denial of reh'g, 563 F. App'x 769 (Fed. Cir. 2014).
  • Global supplier of telecommunications products in successful defense of qui tam action regarding its provision of services to schools and libraries under the federal E-Rate program. Although the district court denied a motion to dismiss, the Fifth Circuit reversed and held on an issue of first impression that funds from the E-Rate program are not "provided by" the United States for FCA purposes. US ex rel. Shupe v. Cisco Systems, Inc., 759 F.3d 379 (5th Cir. 2014).
  • KBR in winning landmark mandamus rulings in DC Circuit relating to privilege governing internal investigations in connection with an FCA case, In re Kellogg Brown & Root, Inc., 756 F.3d 754 (DC Cir. 2014) and In re Kellogg Brown & Root, Inc., 796 F. 3d 137 (DC Cir. 2015), then subsequently winning summary judgment on all accounts, which was affirmed on appeal, US ex. rel. Barko v. Halliburton Co., et al., No. 05-cv-1276 (DDC 2017), aff'd, 709 F. App'x 23 (DC Cir. 2017). We also obtained a nearly $50,000 cost award for KBR at the conclusion.
  • Department of Defense contractor in substantial civil FCA and related suspension and debarment proceedings. This particular matter involved the confluence of significant demands, mainstream press coverage, international contracting, and unique legal issues regarding extraterritoriality. Following extensive litigation, we successfully resolved all aspects of the matter through settlement and agreement.
  • Large defense contractor in obtaining favorable settlement in DOJ-initiated FCA investigation involving allegations of fraudulent inducement in the award by the military of a software development program (SD Cal. 2018).
  • Large defense contractor in obtaining favorable settlement in DOJ-initiated FCA case alleging violations of TINA in price negotiations for alleged failure to disclose current cost or pricing data and claiming damages of potentially upwards of $400 million (ED Mich. 2017).
  • KBR in winning summary judgment in non-intervened qui tam regarding morale, welfare and recreation services, which was affirmed on appeal in first post-Escobar case in DC Circuit. US ex rel. McBride v. Halliburton Co., No. 1:05-cv-828, 2014 WL 12691854 (DDC 2014), aff'd, 848 F.3d 1027 (DC Cir. 2017).
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