KBR Faces $150M False Claims Act Suit Over Soldier Housing

Law360, Dallas (November 19, 2012, 7:30 PM EST) -- The U.S. Department of Justice hit KBR Inc. with a $150 million False Claims Act suit Monday in Illinois federal court, alleging the construction giant and a subcontractor inflated costs and grossly overbilled the government for trailers used to house soldiers in Iraq in 2003.

The suit alleges KBR and its Kuwait-based subcontractor First Kuwaiti knowingly inflated the cost of cranes and trucks and wrongly blamed delays on the lack of military escorts for convoys into Iraq, adding $48.6 million to the cost of the original $80.9 million contract for the 2,252 trailers. The government is also suing the contractor under...

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