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Beware The Cooperative Agreement

Client Alert | less than 1 min read | 04.21.08

In Rick's Mushroom Service, Inc. (Apr. 2, 2008), the Federal Circuit held that a contractor who had a cooperative cost sharing agreement for mushroom waste remediation was out of luck when it followed defective government specifications and had to pay third parties close to $1 million for environmental violations. The Federal Circuit denied Rick's claims for indemnification, holding there was no Contract Disputes Act jurisdiction and that the Spearin doctrine, which provides that the government breaches an implied warranty when it supplies a contractor with defective specifications, was inapplicable because there was no procurement contract and because the doctrine does not extend to third-party claims.

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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....

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