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Breach of Contract

Is the False Claims Act Becoming a Catch-All Penalty for Any and Every Contractual Breach?

March 18, 2016 By Jeffrey Belkin

A recent Department of Justice (DOJ) settlement announcement suggests that the government intends to continue to use the False Claims Act (FCA), rather than more traditional breach of contract or tort claims or regulatory authority, to administer its contracts. On March 7, 2016, the DOJ announced its $3 million settlement with ArmorSource LLC to resolve FCA allegations against the company. ArmorSource contracted with the U.S. Army in 2006 to provide ballistic helmets for combat. In 2010, the Army recalled the helmets after rounds of failed ballistic safety tests. The government alleged that from [...]Read more

Filed Under: Government Contract-Related Investigations and the False Claims Act Tagged With: Breach of Contract, False Claims Act (FCA), U.S. Department of Defense (DOD), U.S. Department of Justice (DOJ)

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This blog is a service of Alston & Bird’s Government Contracts team and provides insights on cases, rules, trends, and latest developments in local, state, and federal government contracting. Our attorney observations include analysis of investigations, litigation, protests and issues affecting present or prospective prime contractors, subcontractors, and grant recipients across various industries.

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