KBR Ruling Likely To Encourage More FCA Litigation

Law360, New York (May 28, 2015, 12:04 PM EDT) -- The U.S. Supreme Court's unanimous decision this week in Kellogg Brown & Root Services Inc. v United States ex rel. Carter has something for everyone. It gives defendants an important victory on a statute of limitations question that threatened exposure to civil fraud litigation with no foreseeable expiration date. At the same time, it resolves a circuit split on the scope of the False Claims Act's first-to-file rule in favor of relators, allowing repetitive qui tam actions to go forward once an earlier-filed qui tam lawsuit has been dismissed. While the court's first holding puts to rest a vigorously contested issue, its second holding creates uncertainty and may make it more difficult to settle qui tam disputes....

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