5th Circ. Kickback Ruling Is Troubling For Contractors

Law360, New York (August 14, 2013, 6:10 PM ET) -- In an unsettling opinion, the United States Court of Appeals for the Fifth Circuit held that 41 U.S.C. § 55(a)(1), the Anti-Kickback Act, extends vicarious liability to an employer for acts of its employees acting with apparent authority, with no need for the plaintiff to demonstrate that the employees were acting for the corporation’s benefit. The statute provides for civil penalties equal to twice the amount of each kickback and punitive damages up to $11,000 for each instance. United States ex rel. Vavra v. Kellogg Brown...
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