SAIC Appeal Could Up FCA Liability For Contractors

Law360, New York (October 8, 2010, 4:25 PM EDT) -- If the Nuclear Regulatory Commission prevails in Science Application International Corp.'s appeal of a $6.5 million False Claims Act judgment, contractors could find themselves in a world where what is arguably a simple breach of contract quickly morphs into multimillion-dollar FCA liability, attorneys said.

The U.S. Court of Appeals for the District of Columbia Circuit heard oral arguments late last month on whether the judgment should be upheld based on what SAIC claims is a “frightening distortion” of the FCA into a “draconian weapon” for extracting...
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