Judge Trims $1.2B Fraud Suit V. Blackwater Successor

Law360, New York (May 23, 2011, 2:25 PM EDT) -- A Virginia federal judge on Friday trimmed a fraud suit against Xe Services LLC, dismissing ex-employees' claims that the company overbilled the government for security work in the aftermath of Hurricane Katrina while preserving claims related to a $1.2 billion overseas contract.

U.S. District Judge T.S. Ellis dismissed one of the more sensational claims in the suit, an accusation that the company put a prostitute on the payroll and charged her salary to the government, in an oral ruling on Xe's motion for summary judgment....
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