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Arbitrability Is for the Arbitrator to Decide

Client Alert | 1 min read | 04.02.13

In U.S. ex rel. Beauchamp v. Academi Training Center, Inc. (E.D. Va. Mar. 29, 2013), in which C&M represented the defendant, the court, after dismissing both FCA claims a week earlier, stayed the relators' retaliation claims, despite their allegations that the arbitration provision in their independent contractor agreements were unconscionable and that arbitrability was for the court to decide. The court held that the parties had delegated the question of arbitrability to the arbitrator with "clear and unmistakable intent" by incorporating the AAA Commercial Rules into the agreements, a delegation which relators failed to challenge, thus leaving it to the arbitrator to decide whether other terms of the agreements made the arbitration provision unconscionable and unenforceable.


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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....