Federal Appeals Court Says Estimates in Government Bids Can Be Actionable As False Claims


The Ninth Circuit issued an opinion last week in which it held that knowingly making “false estimates” in connection with a bid for a government contract may be actionable under the False Claims Act (“FCA”), 31 U.S.C. §§3729 et seq. United States ex rel. Hooper v. Lockheed Martin Corp., No. 11-55278 (9th Cir. Aug. 2, 2012).

The FCA allows private citizen “relators” to file suit on behalf of the government to recover damages from persons who file false claims for government funds. Nyle Hooper worked at Lockheed Martin as the Senior Project Engineer assigned to the U.S. Air Force Range Standardization and Automation (“RSA”) IIA program, which managed the hardware and software supporting launch operations at Vandenberg Air Force Base and Cape Kennedy. He alleged that he was terminated by Lockheed Martin because he was investigating fraudulent activity surrounding Lockheed’s RSA IIA bid. In particular, Hooper charged that Lockheed violated the FCA by, among other things, purposefully underbidding the contract.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Morrison & Foerster LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.