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CFC Blasts AF and DOJ for Vexatious Litigation

Client Alert | 1 min read | 10.31.16

In the latest decision in SUFI Network Servs., Inc. v. U.S. (Oct. 19, 2016), the CFC found SUFI (represented by C&M) to be entitled to litigation attorney’s fees and expenses under the Equal Access to Justice Act, under both the “bad faith, vexatious litigation” exception to the American Rule and the “small business” provisions, for the entire duration of the proceedings at the ASBCA, the CFC, and the Federal Circuit, which have lasted at this point over a dozen years. The CFC awarded fees at counsel’s full, current rates to account for vexatious conduct and delay and also found that the “special factors” of exceptional results and uniquely experienced counsel supported that same award.

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Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....