Blackwater Successor Can't Arbitrate Whistleblower FCA Suit

Law360, New York (March 14, 2013, 2:07 PM EDT) -- A Virginia federal judge Wednesday struck down arbitration agreements attached to the employment contracts of two former firearms instructors of a Blackwater successor who accused the company of violating the False Claims Act by fabricating employee training reports.

U.S. District Judge Liam O'Grady denied Academi Training Center Inc.'s motion to dismiss or stay the case for arbitration, saying that provisions in the arbitration clause between the company and plaintiffs Robert Winston and Allan Wheeler were unconscionable and frustrate the intent of the FCA.

According to the...
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