Civil Remedies Government Contracting

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AGG Food and Drug Newsletter - May 2016

Arnall Golden Gregory LLP's (AGG) Food and Drug Newsletter is a monthly update of legal and regulatory issues that affect the FDA-regulated community, including regular updates on legislative initiatives from AGG’s...more

Federal District Court in Florida Considers Damages (Including Delay Costs and Attorneys Fees) and Defenses Available Under the...

United States ex rel Jack Daniels Construction, Inc. v. Liberty Mutual Insurance Company, 2015 U.S. Dist. LEXIS 172189 (M.D. Fla. Dec. 28, 2015) - This action arises from the construction of the Joint Intelligence...more

First Agency Publishes Significant Increase in FCA Penalties; Others Expected to Follow

On May 2, 2016, the Railroad Retirement Board (Board) published an interim final rule in the Federal Register amending its regulations to increase the minimum and maximum civil monetary penalty amounts under the Board’s...more

Already Enormous False Claims Act Penalties Set to Increase

The already enormous per-claim penalties under the federal False Claims Act (“FCA”) may nearly double by August 1, 2016, ratcheting up the stakes of FCA cases for health care providers, pharmaceutical and medical device...more

Mandatory FCA Per Claim Penalties Dramatically Increased from $11,000 to $21,563

The penalties are potentially astronomical for entities with FCA exposure. In addition to treble damages, the False Claims Act (FCA) provides for mandatory penalties for each false claim submitted “of not less than...more

Attorneys Pay Heavy Price for Block-Billing

Lawyers are aware of the increasing sensitivity—and hostility—of clients to block-billing: lumping more than one activity into a single time entry. A new Fifth Circuit decision shows that courts can be equally sensitive—and...more

Sixth Circuit’s Rejection of Taint Damages Theory in False Claims Act Case Reinforces that Value-Received May Substantially Offset...

In False Claims Act (“FCA”) cases, the Department of Justice and, where the government has declined to intervene, qui tam plaintiffs, routinely pursue aggressive damages theories. In its recent decision in U.S. ex rel. Wall...more

DOJ Briefing Attempts to Avert Fourth Circuit Ruling on Use of Statistical Sampling in FCA Cases

On March 17, 2016, the U.S. Department of Justice (“DOJ”) filed a brief in an eagerly anticipated case that addresses the use of statistical sampling in FCA cases for the first time at the appellate level. The case is United...more

Federal False Claims Act (FCA) Actual Damages for Non-Compliant Goods or Services That Cannot Be Remedied

The Federal False Claims Act, 31 U.S.C. § 3279 ("FCA"), penalizes contractors for, among other false claims, presenting a claim for payment to the Federal Government for goods or services that were not performed. A...more

Olympus to Pay $632.2 Million to Resolve Allegations of Kickbacks

Olympus Corporation of the Americas, the United States’ largest distributor of endoscopes and related medical equipment, recently agreed to pay $623.2 million to resolve criminal charges and civil claims, according to a...more

Circuit Court Rules that Ambiguous Regulatory Requirements Cannot Give Rise to FCA Liability

A recent decision from the United States Court of Appeals for the District of Columbia Circuit evaluated whether a regulatory requirement was sufficiently ambiguous that it precluded a finding of liability under the False...more

Federal Government Recovers $3.5 Billion from False Claims Cases in 2015

The United States Department of Justice has announced that it has recovered over $3.5 Billion from cases brought under the False Claims Act (FCA) in fiscal year 2015. This significant aggregate recovery is a slight decline...more

OFCCP Sues B&H for Alleged Discrimination

Last week, the U.S. Department of Labor’s Office of Federal Contract Compliance Programs (“OFCCP”) filed an administrative lawsuit against B&H Foto & Electronics Corporation (“B&H”), a major New York-based electronics...more

District Court Holds Contractor Not Liable for Army Helicopter Pilot's Paralysis and Confirms Continuing Viability of Government...

In Linfoot v. McDonnell Douglas Helicopter Co., the United States District Court for the Middle District of Tennessee granted McDonnell Douglas Helicopter Co.’s (“MDHC”) motion for summary judgment dismissing failure to warn...more

California Court of Appeals Says, “We Like Eich(leay)!”

Time is money. And nowhere can than be best observed than on a construction project. Project delays can mean lost profits for owners, liquidated damages for general contractors, and increased material, labor, field...more

Services that are Worth Less Aren’t Necessarily Worthless

The Sixth Circuit brought a refreshing sense of reality to the government’s sometimes unreal calculation of damages in False Claims Act (FCA) cases. In this case the government had sought, and won at the trial level, an award...more

Bad News, Good News: Supreme Court Clarifies Federal Contractor Immunity Standards

The Supreme Court both limited and expanded the legal standards that relate to federal contractor immunity from lawsuits in a decision released last week. According to the January 20, 2016 decision in Campbell-Ewald Co. v....more

U.S. Supreme Court Rules Unaccepted Offer of Judgment Does Not Moot Class Claims

The United States Supreme Court further removed a valuable tool from class action defendants’ arsenals January 20, 2016, ruling 6-3 that a class action cannot be mooted by an offer of judgment conferring full relief to an...more

Supreme Court affirms government contractors qualified immunity

In a 6-3 decision issued on January 20, the Supreme Court affirmed in Campbell-Ewald Co. v. Gomez, No. 14-857, that federal government contractors are immune from litigation and liability if their work complies with federal...more

How Not to Moot a Case: Supreme Court Rules Case Remains Live After Unaccepted Offer of Settlement

On January 20, 2016, the Supreme Court of the United States decided another case in a line of cases addressing the issue of class action mootness. Specifically, the justices ruled that an unaccepted settlement offer or offer...more

ASBCA continues to undermine a contractor's ability to successfully establish a statute of limitations defense to government cost...

Recently, in Alion Science & Tech. Corp., ASBCA No. 58992 (Nov. 10, 2015), the ASBCA issued yet another decision undermining a contractor's ability to successfully raise a Contract Disputes Act (CDA) statute of limitations...more

Supreme Court Decides Campbell-Ewald Co. v. Gomez

On January 20, 2016, the Supreme Court decided Campbell-Ewald Co. v. Gomez, holding that an unaccepted offer to satisfy a named plaintiff’s individual claim does not render a case moot. The Court also held that sovereign...more

Money for Nothing: Offer of Complete Relief to Named Plaintiff Does Not Moot Class Action, Supreme Court Holds in 6-3 Decision

An unaccepted Rule 68 offer of judgment that would fully satisfy a named plaintiff’s individual claim does not moot individual or class claims opined the U.S. Supreme Court, resolving a split in the circuits. Campbell-Ewald...more

Public disclosure bar prohibits "bounty-hunting" relators from filing duplicative FCA claims

The United States Court of Appeals for the Seventh Circuit has issued an opinion that underscores the importance of the "public disclosure bar" in False Claims Act (FCA) litigation. The court affirmed a lower court’s...more

Triple Damages Sufficiently Punitive to Bar Punitive Damages

Jennifer Gierer says she was fired because she expressed concerns about her employer’s submission of false durable medical equipment claims to Medicare. So she sued her employer and her boss, alleging (a) retaliation under...more

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