D.C. Circuit Rejects "Collective Knowledge" But Shines Spotlight on Processes

more+
less-

A good internal investigation gives equal scrutiny to people and processes. It may be easier to replace or reprimand the “bad apple” employee than to overhaul a system with which employees are familiar and has become ingrained in the operational culture. Nevertheless, it is increasingly vital that companies take a hard look at systems, structures, and processes. A recent opinion from the D.C. Circuit indicates that these organizational elements will be the next battleground in False Claims Act (“FCA”) litigation.

In United States v. Science Applications International Corporation, SAIC entered into a contract with the Nuclear Regulatory Commission (“NRC”) to provide technical assistance and expert analysis. The contract included strict provisions on conflicts of interest, including a requirement that SAIC seek NRC’s prior written approval if it had reason to believe that a proposed arrangement may raise a conflict of interest. SAIC subsequently entered into two contracts that potentially conflicted with its NRC work. SAIC had a computerized compliance system, but it did not capture all of SAIC’s business relationships and did not adequately associate keywords with descriptions of work. The descriptions were also incomplete. SAIC did not disclose the new contracts to the NRC. The NRC eventually learned about SAIC’s other work from a member of the public and terminated SAIC’s contract. The government then sued SAIC under the False Claims Act.

Please see full article below for more information.

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


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.

© Sheppard Mullin Richter & Hampton LLP | Attorney Advertising

Written by:

more+
less-

Sheppard Mullin Richter & Hampton LLP on:

JD Supra Readers' Choice 2016 Awards
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*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. Or, sign up using your email address.
×
Loading...
×
×