Underbids Can Count As False Claims, 9th Circ. Says

Law360, New York (August 2, 2012, 9:06 PM EDT) -- The Ninth Circuit ruled for the first time Thursday that underbidding or making false estimates can be a False Claims Act violation, partially reviving an employee whistleblower suit alleging Lockheed Martin Corp. intentionally underbid on hardware and software contracts for a U.S. Air Force project.

In the qui tam action, Nyles J. Hooper, a former Lockheed senior project engineer, alleges the defense contractor defrauded the Air Force by intentionally underbidding on a 1995 contract for the so-called Range Standardization and Automation IIA program, which required it...
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