4th Circ. Says Contractor Must Face $80M Bid-Rigging Suit

Law360, Washington (December 15, 2016, 5:00 PM EST) -- An Air Force contractor must answer in Virginia federal court allegations that it orchestrated an $80 million bid-rigging scheme to cut a subcontractor out of ongoing military site testing for electromagnetic pulse vulnerabilities, the Fourth Circuit ruled Wednesday.

A Virginia federal court improperly dismissed L-3 Applied Technologies’ claims that Serco Inc. entered into a “fraudulent scheme” to direct subcontract work previously completed by L-3 to an unqualified competitor based on a faulty standing argument advanced by Serco, the Fourth Circuit said in an unpublished, per curiam opinion.

The lower court had dismissed the case because L-3 was not named in a...

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