Successfully Resolved Intervened False Claims Act Case Against Department of Defense Contractor Involving Multiple Relators

Our attorneys represented a federal contractor in an intervened FCA lawsuit arising out of multiple qui tam suits alleging that the contractor acted recklessly by failing to oversee and discover the fraudulent activities of one of its suppliers. The attorneys obtained dismissal of one relator under the FCA’s first-to-file rule at both the district court level and in the Fifth Circuit. They also successfully defeated an early motion for summary judgment brought by the Department of Justice on its common law claim premised on an alleged violation of the cost-plus-percentage-of-cost prohibition. After Court denied the Government’s motion for summary judgment, the case settled for a fraction of the Government’s alleged single damages.