Shipyard Must Face $78M FCA Suit Over Flawed Hulls

Law360, San Diego (January 2, 2015, 8:15 PM EST) -- A Fifth Circuit panel has revived the federal government's False Claims Act case against Bollinger Shipyards Inc. over $78 million in modifications to eight U.S. Coast Guard ship hulls that allegedly failed, ruling that a lower court required too much about Bollinger's state of mind.

The government claims the Coast Guard boats were rendered unseaworthy because Bollinger miscalculated the hulls' resistance to bending, but a Louisiana federal judge tossed the suit in 2013 because prosecutors had failed to show the ship repair company's mistake was intentional.

But the appellate panel said the U.S. was not required to plea Bollinger's knowledge with...

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