11th Circ. Upholds Suspension Of Contractor Affiliates

Law360, New York (January 2, 2014, 3:24 PM EST) -- The Eleventh Circuit ruled in a precedential decision Tuesday that affiliates of indicted government contractors can be suspended from doing business with the government for longer than 18 months even if legal proceedings have been brought only against the parent company.

The decision reversed an Alabama district court's ruling that the United States couldn't keep two U.S.-based affiliates of Kuwait-based Agility Public Warehousing Co. KSC suspended for nearly three years without attempting to prove any wrongdoing beyond their affiliation with Agility.

The appellate court found that...
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