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Government Contracts
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October 17, 2024
Contractor Tells Fed. Circ. Navy Improperly Canceled Deal
A contractor urged the Federal Circuit to abandon a lower court finding that the U.S. Navy reasonably canceled an agreement for it to provide engineering services for a Florida naval air station, saying in a filing Wednesday that a termination memorandum the government submitted to the court appears to be "fraudulent."
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October 17, 2024
Feds Drop Marketing Exec's Tricare Fraud Case In Florida
A Florida marketing executive previously convicted in a healthcare fraud scheme and then granted a new trial has had his criminal case dismissed by U.S. attorneys after he alleged prosecutorial misconduct, saying federal officials violated his constitutional rights and fed lies to a grand jury in order to secure an indictment.
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October 16, 2024
County Asks Judge To Let State Court Handle Detention Issue
An Indiana county asked a federal court on Tuesday to refrain from hearing immigrant detainees' claims that it violated a duty to "take care" of them, saying the question involves complex local issues that should be resolved by a state court.
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October 16, 2024
Feds Say EPA Not Responsible For Flint Water Crisis
The U.S. Environmental Protection Agency on Wednesday sought to shake claims from Flint, Michigan, residents alleging the agency did not properly respond to the water crisis, telling a Michigan federal judge it had no part in switching the town's water source or corrosion control efforts.
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October 16, 2024
Mich. Landfill Says Manhattan Project Waste A National Issue
A Michigan dump site on Tuesday said a dispute over whether it can accept radioactive material from the first atomic bomb project is a matter of national concern, arguing attempts by a group of surrounding communities in state court to block it from accepting the waste interferes with a federal waste program.
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October 16, 2024
SEC Data Contractor Faked Audit Certification, Feds Say
The CEO of a company that received roughly $11 million from the U.S. Securities and Exchange Commission to provide data infrastructure services was charged in D.C. federal court with creating a shell entity to fraudulently claim his business was certified for high-level reliability and security, prosecutors announced Wednesday.
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October 16, 2024
Houston Pharma Exec Found Guilty In $160M Health Fraud
A Houston man was convicted on 15 criminal charges in connection with orchestrating a massive healthcare scheme that defrauded the government out of $160 million, following a 10-day trial in which prosecutors said doctors were "bamboozled" by the conspiracy.
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October 16, 2024
'Fat Leonard' Faces 11 Years For Navy Bribery Scheme
Federal prosecutors are seeking more than 11 years in prison for Leonard Francis, the Malaysian defense contractor and ex-fugitive known as "Fat Leonard" who led a sprawling bribery and corruption scheme that allegedly caused over $20 million in losses for the U.S. Navy.
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October 16, 2024
RTX To Pay $1B For Qatari Bribes And Defrauding US Gov't
RTX Corp. and its Raytheon subsidiary have agreed to pay approximately $1 billion and enter into two separate deferred prosecution agreements in connection with a bribery scheme to secure Qatari military contracts, as well as separate ploys to defraud the U.S. government in deals for Patriot missile and radar systems.
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October 15, 2024
Boeing Judge Wants DEI Monitor Pick Info Before Plea Ruling
The Texas federal judge overseeing prosecutors' criminal case against The Boeing Co. on Tuesday said he needs more information on a provision of the proposed plea deal regarding how the U.S. Department of Justice would select an independent monitor in compliance with the agency's diversity and inclusion policies.
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October 15, 2024
New Cybersecurity Rules Threaten Defense Industrial Base
The Pentagon's stringent new cybersecurity rule for its contractors threatens to drive away companies that may struggle with the added costs of compliance, while exacerbating concerns about an already-shrinking defense industrial base.
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October 15, 2024
Feds Cut Whistleblowers Out Of Kickback Deal, Court Told
Whistleblowers who accused a medical device company of a kickback scheme said Tuesday that the government left them out to dry when it settled False Claims Act claims with surgeons for $3.3 million and refused to share any of it with them.
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October 15, 2024
Aerospace Firm Must Hand Over Bank Accounts To Buyer
A Colorado state judge entered an emergency order Monday forcing a Colorado aerospace company that sold its assets to California-based Interconnect Solutions Co. for $15 million to turn over its business accounts to ISC, which said the accounts are needed to perform work for customer Lockheed Martin.
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October 15, 2024
Lit Funder-Backed Co. Says NJ Judicial Privacy Law Is Valid
A New Jersey judicial privacy law is not unconstitutional since it requires that defendants act negligently by knowingly violating the law, a data privacy company said in seeking to prevent the dismissal of dozens of lawsuits, which the company also acknowledged are being funded by third-party litigation funder Parabellum Capital LLC.
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October 15, 2024
Law Firms Diverge As Anti-ESG Pushback Continues
A continuing onslaught of legislation and litigation opposing corporate environmental, social and governance actions has created a fork in the road for law firms, with some choosing to scale back efforts and others pushing ahead with their internal ESG and diversity, equity and inclusion goals.
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October 15, 2024
The 2024 Law360 Pulse Social Impact Leaders
Check out our Social Impact Leaders ranking, analysis and interactive graphics to see which firms stand out for their engagement with social responsibility and commitment to pro bono service.
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October 15, 2024
Justices Let Solicitor General Argue In E-Rate Fraud Case
The Solicitor General's Office will defend private citizens' ability to sue for E-rate fraud on behalf of the government under the False Claims Act, after the U.S. Supreme Court on Tuesday granted the solicitor general's request to participate in oral arguments in an AT&T subsidiary's challenge to the law's application.
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October 15, 2024
Ill. Home Health Kickbacks Ruling Intact After Justices Pass
The nation's top court said Tuesday it won't review a Seventh Circuit decision largely affirming that a home health care company broke federal kickback laws, leaving intact its holding that the company must pay millions in damages.
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October 11, 2024
Quinn Emanuel Gets Trimmed $92M Fee In ACA Cases
Quinn Emanuel Urquhart & Sullivan LLP will get $92 million in fees from a $3.7 billion win in two class actions against the government over risk corridor payments under the Affordable Care Act, a U.S. Court of Federal Claims judge ruled Thursday, trimming the firm's renewed $185 million request.
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October 11, 2024
Challenge To $60.7B Deal's Award Cap Is Late, Judge Says
Protesters to a $60.7 billion IT deal couldn't convince the U.S. Court of Federal Claims that the U.S. Department of Veterans Affairs arbitrarily limited spots to 30 companies, with a judge saying that argument should have been raised earlier.
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October 11, 2024
Secret Docs May Delay Foreign Agent Case, Ex-Fla. Rep Says
A former Florida congressman told a Miami federal judge on Friday that he's requested evidence from prosecutors that may exonerate him on criminal charges of failing to register as a foreign agent while lobbying for Venezuela, saying the discovery implicates classified information that may delay proceedings in his case.
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October 11, 2024
DOD Finalizes High-Profile Contractor Cybersecurity Rule
The U.S. Department of Defense on Friday finalized a rule implementing its sweeping Cybersecurity Maturity Model Certification program, which will attach a minimum cybersecurity requirement to nearly all DOD contracts.
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October 11, 2024
DOJ Tells Judge Boeing Plea Is 'The Best The Gov't Could Do'
The federal government told a Texas federal judge Friday that its proposed deal with The Boeing Co. over allegations that it lied to safety regulators about the 737 Max 8's development is "the best the government could do," pushing back against vehement objection from crash victims' families, who called the deal "rotten" and "morally reprehensible."
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October 11, 2024
Indicted NJ Power Broker Says Civil Suit Belongs In Biz Court
Indicted Garden State power broker George E. Norcross III has asked a New Jersey state judge to transfer the civil racketeering suit brought against him and his attorney brother by a Philadelphia developer to the state's complex business litigation program.
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October 11, 2024
RTX Warned By Judge Over 'Troubling' Settlement Delay
A Massachusetts federal judge on Friday chided RTX for slow-walking the finalization of a settlement the defense contractor struck with a Connecticut company just before trial in a trade secrets dispute.
Expert Analysis
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3 High Court Rulings May Shape Health Org. Litigation Tactics
Three separate decisions from the U.S. Supreme Court's most recent term — Loper Bright, Corner Post and Jarkesy — will likely strengthen healthcare organizations' ability to affirmatively sue executive agencies to challenge regulations governing operations and enforcement actions, say attorneys at McDermott.
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Opinion
The Big Issues A BigLaw Associates' Union Could Address
A BigLaw associates’ union could address a number of issues that have the potential to meaningfully improve working conditions, diversity and attorney well-being — from restructured billable hour requirements to origination credit allocation, return-to-office mandates and more, says Tara Rhoades at The Sanity Plea.
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Opinion
It's Time For A BigLaw Associates' Union
As BigLaw faces a steady stream of criticism about its employment policies and practices, an associates union could effect real change — and it could start with law students organizing around opposition to recent recruiting trends, says Tara Rhoades at The Sanity Plea.
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Why DOJ's Whistleblower Program May Have Limited Impact
The U.S. Department of Justice’s new whistleblower pilot program aims to incentivize individuals to report corporate misconduct, but the program's effectiveness may be undercut by its differences from other federal agencies’ whistleblower programs and its interplay with other DOJ policies, say attorneys at Milbank.
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Takeaways From Virginia's $2B Trade Secrets Verdict Reversal
The Virginia Court of Appeals' recent reversal of the $2 billion damages award in Pegasystems v. Appian underscores the claimant's burden to show damages causation and highlights how an evidentiary ruling could lead to reversible error, say John Lanham and Kamran Jamil at Morrison Foerster.
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How Justices Upended The Administrative Procedure Act
In its recent Loper Bright, Corner Post and Jarkesy decisions, the U.S. Supreme Court fundamentally changed the Administrative Procedure Act in ways that undermine Congress and the executive branch, shift power to the judiciary, curtail public and business input, and create great uncertainty, say Alene Taber and Beth Hummer at Hanson Bridgett.
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Parsing FY 2024 DOJ Criminal Healthcare Fraud Enforcement
While the U.S. Department of Justice's Criminal Division's strike force on healthcare fraud enforcement action shows an impressive doubling of criminal indictments, a closer look at the data offers important clues about underlying trends, including the comparably modest, accompanying increase in associated intended loss, say Roderick Thomas and Kathleen Cooperstein at Wiley.
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How Gov't AI Protections May Affect Contractors' Data Rights
The U.S. Senate’s proposed National Defense Authorization Act for 2025, which includes provisions to maintain the government's data rights when contracting for artificial intelligence, should prompt contractors to examine how to protect their own rights when the current data rights framework is applied to AI, say Tyler Evans and Caitlin Conroy at Steptoe.
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Lessons From Recent SEC Cyber Enforcement Actions
The recent guidance by the SEC's Division of Corporation Finance is helpful to any company facing a cybersecurity threat, but just as instructive are the warnings raised by the SEC's recent enforcement actions against SolarWinds, R.R. Donnelley and Intercontinental Exchange, say attorneys at O'Melveny.
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9th Circ. Ruling Flags Work Harassment Risks Of Social Media
The recent Ninth Circuit ruling in Okonowsky v. Garland, holding an employer could be liable for a co-worker's harassing social media posts, highlights new challenges in technology-centered and remote workplaces, and underscores an employer's obligation to prevent hostile environments wherever their employees clock in, say Jennifer Lada and Phillip Schreiber at Holland & Knight.
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Mirror, Mirror On The Wall, Is My Counterclaim Bound To Fall?
A Pennsylvania federal court’s recent dismissal of the defendants’ counterclaims in Morgan v. Noss should remind attorneys to avoid the temptation to repackage a claim’s facts and law into a mirror-image counterclaim, as this approach will often result in a waste of time and resources, says Matthew Selmasska at Kaufman Dolowich.
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Series
Playing Dungeons & Dragons Makes Me A Better Lawyer
Playing Dungeons & Dragons – a tabletop role-playing game – helped pave the way for my legal career by providing me with foundational skills such as persuasion and team building, says Derrick Carman at Robins Kaplan.
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Bid Protest Spotlight: Misplaced Info, Trade-Offs, Proteges
James Tucker at MoFo examines three recent decisions concerning the consequences of providing solicited information in the wrong section of a bid proposal, the limits of agency discretion in technical merit, best-value trade-off evaluations, and the weight of the experience and capabilities of small businesses in mentor-protégé joint venture qualification.
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Del. Dispatch: Director Caremark Claims Need Extreme Facts
The Delaware Court of Chancery recently dismissed Caremark claims against the directors of Centene in Bricklayers Pension Fund of Western Pennsylvania v. Brinkley, indicating a high bar for a finding of the required element of bad faith for Caremark liability, and stressing the need to resist hindsight bias, say attorneys at Fried Frank.
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Opinion
Time To Reimagine The Novation Process For Gov't Contracts
The Federal Acquisition Regulatory Council, which recently extended a long-standing request for public comments on its novation procedures, should heed commenters' suggestions by implementing specific changes in its documentation requirements, thereby creating a more streamlined and practical novation process, say attorneys at Covington.