Government Contracts

  • October 9, 2015

    New $2.6B Suit Against Verizon, AT&T Gets Bad Reception

    A California federal judge on Friday tossed a Los Angeles government contractor's False Claims Act case accusing Verizon, Sprint and AT&T of filing $2.56 billion in fraudulent bills, saying the whistleblower failed to answer questions the judge raised when he last dismissed the suit.

  • October 9, 2015

    Maersk Beats Naval Ship Bid Protest At Fed. Claims Court

    The U.S. Court of Federal Claims has axed a bid protest of a 2013 contract awarded to Maersk Line Ltd. to charter a ship for the U.S. Navy's use, rejecting a rival's argument that Maersk unfairly calculated fuel costs in its offer.

  • October 9, 2015

    FAA Starts Eyeing Drone-Tracking Technology

    The Federal Aviation Administration said Thursday it is partnering with a contractor to test technology that tracks drones flying near airports and that may offer air safety officials an important tool as they address a sharp increase in drone sightings by pilots.

  • October 9, 2015

    DC Circ. Stands By Revival Of Developer Collusion Suit

    A D.C. Circuit appeals panel refused on Friday to reconsider its recent decision to revive certain claims in a suit against real estate developers accused of wrongfully influencing a local city council member to withdraw support from a competitor.

  • October 9, 2015

    Fastenal To Pay $1.25M To Settle Hiring Discrimination Probe

    The U.S. Department of Labor said Thursday that parts distributor Fastenal Co., a federal contractor, has agreed to pay $1.25 million to more than 8,000 African-American and female applicants to settle hiring discrimination claims, and that the company will hire 171 of those applicants.

  • October 9, 2015

    Pay-Tel Warns Prison Call Rate Caps Will Breed New Problems

    Pay-Tel Communications Inc. has asked the Federal Communications Commission to change plans for new rate caps for inmate calling services, telling agency staff that the proposal will allow providers to find ways to funnel charges to other areas.

  • October 9, 2015

    Ex-Nova Datacom CTO Sentenced To 7 Yrs. In Bribery Case

    The former chief technology officer of tech contractor Nova Datacom LLC on Thursday was sentenced to more than seven years in prison for his admitted role in a vast bribery scheme that brought down the company and has been described as possibly the largest domestic contract-rigging case in U.S. history.

  • October 9, 2015

    3 Execs Plead Guilty In $19M Highway Contract Scheme

    Three Pennsylvania highway construction company principals have pled guilty in connection with a scheme that allegedly defrauded the U.S. Department of Transportation of $18.7 million by falsely securing contracts under the Disadvantaged Business Enterprise program, a Department of Justice spokeswoman confirmed Friday.

  • October 9, 2015

    Hospital Signs $4M FCA Deal Over Fugitive Doc's Surgeries

    UC Health and its West Chester Hospital in Cincinnati have agreed to pay more than $4 million to settle a False Claims Act suit with the federal government, in which a doctor is accused of billing Medicare and Medicaid for medically unnecessary spinal surgeries and then fleeing the country, the U.S. Department of Justice announced Friday.

  • October 9, 2015

    Venable, OLG Say Settlement Coming In Fees Row

    Venable LLP and Overseas Lease Group Inc. asked a Washington, D.C., federal judge Thursday to dismiss a fraud claim against OLG’s chief executive, part of what both sides describe as an agreement to resolve an underlying dispute over legal fees relating to a government contract case.

  • October 9, 2015

    Healogics Whistleblowers Dump Medicare FCA Suit

    Whistleblowers asked a Florida federal court Thursday to dismiss their False Claims Act suit alleging Healogics Inc.'s wound care centers routinely gave patients unnecessary hyperbaric oxygen therapy to cash in on Medicare reimbursements.

  • October 9, 2015

    Pentagon Blocks University Of Phoenix Recruitment Efforts

    The Department of Defense has barred University of Phoenix from recruiting on military bases or receiving DOD tuition payments after an investigation into the for-profit college revealed the breadth of its marketing activities aimed at active-duty service members.

  • October 8, 2015

    Northrop Grumman Beats Whistleblower's $62M FCA Claims

    Northrop Grumman Corp. shut down a whistleblower’s claims Thursday when an Illinois federal judge found the former employee hadn’t shown a mutual understanding between the company and the Department of Homeland Security on the terms in a $62 million missile defense contract.

  • October 8, 2015

    Fla. Home Health Services Co. Hit With FCA Suit

    A former nurse practitioner has sued two related home health services companies, claiming they conspired to self-refer Medicare patients, drop them, and recertify them to collect another fee, according to documents unsealed Wednesday in Florida federal court.

  • October 8, 2015

    IT Workers Hit General Dynamics With Wage-And-Hour Claims

    A pair of former General Dynamics Corp. workers accused the company of failing to pay overtime to the information technology help desk workers handling tasks linked to the company’s contract with U.S. Citizenship and Immigration Services, according to a Virginia proposed collective action filed Thursday.

  • October 8, 2015

    Aerospace Co., Former Exec To Pay $20M To End FCA Suit

    An aerospace company and its former president agreed to pay $20 million to resolve False Claims Act allegations that it fraudulently said it was a women-owned small business in order to procure $48 million in government contract work, federal prosecutors announced Thursday.

  • October 8, 2015

    Contractor In FCA Trial Wants Ex-CFO’s Testimony Barred

    A fire-safety defense contractor accused of falsely billing the government and retaliating against an employee who spoke out is seeking to bar testimony from a former chief financial officer, saying it expects the executive to raise questions about a defendant’s character that are irrelevant and inadmissible.

  • October 8, 2015

    New Rule Would Change Federal Regs For Construction Bids

    The U.S. Department of Defense, NASA and the U.S. General Services Administration on Thursday proposed changing federal acquisition guidelines to tighten administrative control over the bidding process for high-cost construction projects.

  • October 8, 2015

    Ex-Chicago Schools Chief To Cop To $23M Kickback Scheme

    The U.S. attorney's office in Chicago handed down a blockbuster indictment against the former head of Chicago Public Schools Thursday, with Barbara Byrd-Bennett saying she’ll plead guilty to receiving kickbacks from a contractor who was awarded $23 million from the city during her time in office.

  • October 8, 2015

    Contractor Asks 5th Circ. To Cut Fees In Construction Row

    A contractor hired to build a New Orleans elementary school has asked the Fifth Circuit to reverse a lower court’s ruling that it owes penalties and attorneys' fees to a subcontractor over delayed payments, saying the ruling appeared to suggest the contractor was justified in withholding some of the money.

Expert Analysis

  • 10 Ways To Become A 360-Degree Lawyer

    Rosario Lozada Schrier

    Whether you’re a millennial joining the profession or a seasoned veteran, the challenges posed by the current legal market compel everyone to adapt and innovate. Law professors Rosario Schrier and Annette Torres team up to offer 10 tips to develop a more diverse skill set.

  • Hitachi Underscores Need For Robust FCPA Due Diligence

    Mark Mendelsohn

    A recent action against Hitachi Ltd. is further evidence of the U.S. Securities and Exchange Commission’s ability to use its expansive reach under the Foreign Corrupt Practices Act’s accounting provisions to police bribery and bribery-related conduct that it may not be able to reach under the anti-bribery provisions, say attorneys with Paul Weiss Rifkind Wharton & Garrison LLP.

  • What To Worry About When Selling Lab Outreach Businesses

    Paul A. Gomez

    Although sales of laboratory outreach businesses can help hospitals and health systems redeploy resources to core services and operations, anti-kickback statute concerns can be raised by the sale of such businesses if compensation paid to the hospital or health system exceeds what is consistent with fair market value for the business that is acquired, says Paul Gomez of Epstein Becker & Green PC.

  • 4th Circ. FCA Statistical Sampling Case Is One To Watch

    Jeanne A. Markey

    Courts have begun to accept statistical sampling not only for damages calculations but also as a means of proving liability under the False Claims Act — a trend that provides the government with a critical tool in ensuring that no fraud is “too big to prove.” The Fourth Circuit's decision in U.S. v. Agape Senior Community will be the first time a circuit court weighs in, say Jeanne Markey and Raymond Sarola of Cohen Milstein Sellers & Toll PLLC.

  • A Post-Tuomey Future: Huge Stark Law Hospital Settlements

    T. Reed Stephens

    After the government's victory against Tuomey Healthcare System Inc., we have seen more large False Claims Act settlements with hospitals involving Stark Law allegations — relators are even citing as evidence of ongoing recklessness that hospital executives have been emailing articles about the Tuomey case to their staff, say Tony Maida and T. Reed Stephens of McDermott Will & Emery LLP.

  • How An Attempt To Avoid Formal Bid Protest Can Backfire

    Adam K. Lasky

    The U.S. Government Accountability Office's recent bid protest decision in Coulson Aviation may punish contractors that seek to resolve concerns about a solicitation outside the protest process, says Adam Lasky of Oles Morrison Rinker & Baker LLP.

  • 5 Things Clients Never Tell Their Lawyers

    Francis Drelling

    Given the times we live in, it is almost inevitable that everyone will, sooner or later, need to consult with legal counsel. With that in mind, I thought it might be interesting to discuss a few things that clients just won't tell their lawyers, says Francis Drelling, general counsel of Specialty Restaurants Corp.

  • 3rd Circ. Reins In Damages For Disadvantaged Business Fraud

    David A. Vicinanzo

    Curtailing an aggressive loss theory that held defendants to more than the government’s loss in some fraud cases, the Third Circuit's recent decision in U.S. v. Nagle makes clear that when the government contracts for goods or services and receives them, the proper measure of loss is not the full value of the contract, say attorneys with Nixon Peabody LLP.

  • FCA's Split Personality Makes Compliance A Moving Target

    David Hall

    The False Claims Act is undergoing an identity crisis. Decisions this year by the First, Fourth and Seventh Circuits have magnified a split among the federal appeals courts regarding what conduct actually constitutes a false claim under the FCA, say David Hall and Matthew Nettleton of Wiggin and Dana LLP.

  • New GSA Rule For Commercial Suppliers: A Mixed Bag

    Robert S. Metzger

    The U.S. General Services Administration's recently issued class deviation was on track to resolve issues arising from the 15 “fail list” terms in standard commercial supplier agreements. Unfortunately, a little-noticed change to the “Order of Precedence” clause will work against goals that the GSA and commercial suppliers share, say Robert Metzger and Oliya Zamaray of Rogers Joseph O'Donnell PC.