KBR Case May Weaken Atty-Client Shield For Internal Probes

By Dietrich Knauth (March 11, 2014, 9:05 PM EDT) -- A federal judge has ordered KBR Inc. to turn over a slew of internal fraud investigations to a False Claims Act relator, and experts say the ruling's broad wording could weaken attorney-client privilege for internal investigations prepared by government contractors and other heavily regulated companies.

KBR is fighting to keep 89 reports of internal fraud investigations out of the hands of former KBR subcontract manager Harry Barko, who has accused the company of defrauding the government through its Iraq War subcontracts with a Jordanian company, Daoud and Partners, that performed substandard work and inflated bills that KBR passed along to the...

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