KBR Can't Shake Kickback Claim In $41M Contract Row

Law360, New York (July 6, 2011, 6:37 PM EDT) -- A federal judge's order unsealed Wednesday struck down certain counterclaims filed by the U.S. in response to Kellogg Brown & Root Services Inc.'s suit over $41 million in contract payments withheld by the government.

Federal prosecutors in March accused KBR of fraud and violations of the Anti-Kickback Act and the False Claims Act, saying KBR’s claim to reimbursements was extinguished because of kickbacks it received from a subcontractor that was awarded lucrative dining facility contracts at Camp Anaconda in Iraq.

In an opinion filed under seal...
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