5th Circ. Kickback Ruling Further Squeezes Contractors

Law360, New York (July 29, 2013, 8:55 PM EDT) -- A recent Fifth Circuit ruling allows the government, for the first time, to punish companies for Anti-Kickback Act violations committed by their employees and subcontractors, a decision that will ramp up the already intense pressure on contractors' ethics and compliance programs.

The Fifth Circuit ruled on July 19 that the federal government can recover enhanced civil penalties from KBR Inc. under the Anti-Kickback Act, reversing a lower court decision that had ruled out punitive damages against KBR based on kickbacks that KBR employees allegedly took in...
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