False Estimates, False Underbidding Lead To False Claims

Law360, New York (August 13, 2012, 1:17 PM EDT) -- In a startling decision of "first impression," the U.S. Court of Appeals for the Ninth Circuit has held that a contractor's proposed cost estimates for a cost-reimbursable contract may give rise to false claims under the False Claims Act (FCA) where the proposal is based on "false estimates" or "fraudulent underbidding." U.S. ex rel. Hooper v. Lockheed Martin Corp., No. 11-55278, (9th Cir. Aug. 2, 2012).

After the trial court granted the defendant's motion for summary judgment on the ground that the qui tam relator had...
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