Key Takeaways for Companies to Consider When Doing Government-Contract Work

Key takeaways for companies to consider when doing government-contract work -

Brownstein’s litigation team scored a major victory for client Flintco, a New Mexico-based contractor, in one of New Mexico’s first trials under the Fraud Against Taxpayers Act. The recently adopted act allows a person to sue on behalf of taxpayers when public funds are involved. In this case, the plaintiffs were seeking approximately $8.8 million in total damages related to a $60 million renovation project on the University of New Mexico's Pit. After mandatory trebling of damages, potential statutory fines and attorney fees, total damages would have been close to $30 million. The monetary damages were daunting for Flintco. What was equally concerning, however, was the potentially devastating reputational hit the 76-year-old local company faced.

Brownstein’s litigation team maneuvered through what is considered uncharted territory because very few Fraud Against Taxpayers Act cases ever make it to trial. This was one of the first in New Mexico, if not one of the first nationally. In fact, the majority of these cases settle because the consequences of going to trial can be devastating for a company, including: additional bad publicity over a longer period of time, the possibility of being banned from government contracting, and less control over which subsidiary of the company will be banned.

Brownstein’s client was vindicated when a 12-person Santa Fe jury decided Flintco did not violate the Fraud Against Taxpayers Act. The successful litigation team of Eric Burris and Adam Lyons created the following five points for companies to consider when doing government-contract work.

Please see full article below for more information.

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

Written by:

Published In:

Tax

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.

© Brownstein Hyatt Farber Schreck | 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.
×
Loading...
×
×