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New Jersey Federal Court Allows “Self-Help” Counterclaims Against Potential FCA Whistleblowers To Proceed

Last week, a New Jersey federal court allowed medical device maker Boston Scientific Neuromodulation Corp. (“Boston Scientific”) to proceed with counterclaims against two of its former employees for violating their contracts...more

Federal District Court in New Jersey Holds that Economic Loss Rule Does Not Bar Contractor’s Tort Claims Against Architect Where...

The University of Medicine and Dentistry of New Jersey contracted HDR Architects and Engineers, P.C. (“HDR”) to design a medical school building. After the project went to bid, the Bedwell Company (“Bedwell”) contracted with...more

Alleged illegal recruiting for college leads to False Claims Act complaint

In Brief - Stevens-Henager College and its owners are accused of offering compensation incentives to admission consultants based on the number of students they recruit. - The government alleges that the college...more

False Statements in Federal Grant Applications Present a Risk of Significant Financial Exposure to Grant Recipients

Two federal appellate courts have upheld awards of damages under the civil False Claims Act (FCA) (31 U.S.C. 3729) equal to three times the total amount of money paid under federal grants (US ex rel Longhi v US); US ex rel...more

Federal Circuit’s Metcalf Decision a Big Win for Contractors

In a recent decision, the U.S. Court of Appeals for the Federal Circuit (“CAFC”) the supervising court for the Court of Federal Claims and the Boards of Contract Appeals, among others) clarified important legal principles...more

Qui tam relators target – and gain access to – internal investigation on ground that attorney-client privilege does not apply

In Brief - A federal district court recently held that documents relating to a government contractor’s internal compliance investigations regarding fraud were not protected by the attorney-client privilege because...more

In Government's Shoes: The Continuing Force Behind the False Claims Act & Qui Tam Complaints

To combat fraud by contractors selling faulty war supplies to the Union Army, in 1863 President Abraham Lincoln signed into law the False Claims Act (the “FCA”). Designed to root out fraud on the federal government, this act...more

Who Says Life’s Not Fair: Good Faith and Fair Dealing Prevails in Metcalf Case.

In a ruling highly anticipated among government contractors, the United States Court of Appeals for the Federal Circuit held on February 11, 2014, in Metcalf Construction Company, Inc. v. United States, No. 2013-5041 (Fed....more

Avoid the Quick Fix: Addressing Government Contracting Ethical Breaches That Can Destroy A Business

For the last 15 years, the Foreign Corrupt Practices Act (FCPA) has garnered the most “compliance” attention by companies and the media due to the severe penalties associated with the bribing of foreign government officials....more

Province Ordered to Pay Damages to Timber Company over Aboriginal Road Blockade

On December 23, 2013, the British Columbia Supreme Court (Court) ordered the Province of British Columbia (Province) to pay logging contractor Moulton Contracting Ltd. a sum of $1.75 million in damages for the Province’s...more

Appeal Court Allows $2-Billion Wind Farm Action to Proceed Against Government of Ontario

On November 12, 2013, inTrillium Power Wind Corporation v. Ontario (Natural Resources), 2013 ONCA 683, the Ontario Court of Appeal allowed a $2-billion action by Trillium Power Wind Corporation (Trillium) to proceed against...more

Eighth Circuit Addresses Scope of False Claims Act Liability

Last month, the Eighth Circuit Court of Appeals addressed the scope of “fraud-in-the-inducement” liability under the False Claims Act (FCA), 31 U.S.C. §§ 3729-3733, and, in doing so, reversed the dismissal of a claim related...more

Eighth Circuit Adopts Novel False Claims Act Fraud-in-the-Inducement Theory Long Espoused by Government

On October 15, 2013, a divided three-judge panel of the United States Court of Appeals for the Eighth Circuit rendered a federal False Claims Act ("FCA") judgment against Bayer Healthcare Pharmaceuticals ("Bayer"), based on a...more

Southern District Of New York Again Endorses DOJ Mortgage Fraud Theory

On September 24, U.S. District Court Judge Jesse Furman largely denied a bank’s motion to dismiss a complaint filed by the U.S. Attorney’s Office for the Southern District of New York (SDNY) in which the government alleges...more

Texas Federal District Court Allows Government’s FCA/FIRREA Mortgage Suit To Proceed

On September 10, the U.S. District Court for the Southern District of Texas denied a mortgage lender’s motion to dismiss the federal government’s claims that the lender and two of its executives knowingly made false...more

Tropp v. Conair et al.

Brief in Opposition to Defendants' Motion for Summary Judgment On the Ground of Non-Infringement

Brief in opposition to defendants' post-Akamai motion for summary judgment on the ground of non-infringement....more

Tropp v. Conair et al.

Brief in Opposition to Defendants' Motion for Summary Judgment Based on 28 U.S.C. § 1498

From the preliminary statement: Plaintiff David Tropp (“Tropp”), owner of U.S. Patent Nos. 7,021,537 and 7,036,728 (the patents-in-suit), submits this memorandum of law in opposition to the motion by Travel Sentry and...more

New Penalties for Misrepresentations From Small Business Government Contractors

Under a final rule effective August 27, 2013, small businesses, including those in the automotive industry, that willfully misrepresent their small business size status for the purpose of soliciting or obtaining a federal...more

Threats and Vulnerabilities - What Every Contractor Should Know About The SBA's New "Presumed Loss" and "Deemed Certification"...

Nearly three years ago, on September 27, 2010, the President signed into law the Small Business Jobs Act of 2010 (“Jobs Act”), which directed the Small Business Administration (“SBA”) to implement a variety of small business...more

7th Circuit Determines Qui Tam False Claims Act Case Against ITT Should Go Forward

This week we look at the 7th Circuit's decision in Leveski v. ITT Educational Services, Inc., in which the court reinstated a False Claims Act qui tam action against ITT and removed the imposition of $395,000 in sanctions...more

PRIME Act: New Legislation to Curb Health Care Fraud

The United States Senate and House of Representatives recently introduced bipartisan legislation designed to reduce fraud, waste, and abuse in the Medicare and Medicaid programs. The legislation, entitled “Preventing and...more

Second Highest Penalty in FCPA History Comes with a Caution from the Bench about the Limits of the Act’s Jurisdiction

In Brief - The Foreign Corrupt Practices Act covers a nearly boundless range of business conduct by issuers and their agents in an ever more global world. Yet the contrast in sentences handed down in two recent FCPA...more

Contribution Between Insurance Carriers And The Duty To Defend

In St. Paul Mercury Insurance v. Mountain West Farm Bureau, 210 Cal. App. 4th 645 (10/25/12), the California Court of Appeal addressed the duty of an insurance carrier to defend a general contractor named as an additional...more

Recent Insurance Coverage Decisions Of Note In California

California Courts handed down some interesting decisions re insurance coverage during the fourth quarter of 2012: St. Paul Mercury Insurance v. Mountain West Farm Bureau (10/25/12) In an equitable contribution action, an...more

Casting a Smaller Net: Seventh Circuit Requires "Net Trebling" Under FCA – Potentially Impacting Settlement Dynamics for all...

The Seventh Circuit recently ruled that under the False Claims Act (“FCA”) treble damages should be calculated by the net amount of loss suffered by the government (after appropriate setoffs or credits are deducted) rather...more

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