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Fixed-Price or Firm-Fixed-Price? Contractor’s Right to Seek Reimbursement of Legal Costs in Defending Qui Tam Suits

Client Alert | 1 min read | 11.20.18

On October 26, 2018, the Court of Federal Claims denied the government’s motion to dismiss a contractor’s lawsuit seeking reimbursement of legal costs incurred in defense of a False Claims Act qui tam suit, and found that the contractor sufficiently pled the requirements for allowability. Tolliver Group, Inc. v. United States, 2018 WL 5307076 (Fed. Cl. Oct. 26, 2018). Tolliver alleged that the legal costs are allocable to the initial fixed-price, level of effort contract, while the government argued that a modification changed the contract to firm-fixed-price—precluding any cost adjustments absent a contract clause providing otherwise. The Court found that the qui tam suit could only have been brought based on Tolliver’s work under the initial task order, and held that the terms and conditions under the initial contract remained in full force and effect, including—by operation of law under the Christian doctrine—the provisions of FAR § 31.205-47 covering allowable legal costs. 


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Client Alert | 6 min read | 03.26.24

California Office of Health Care Affordability Notice Requirement for Material Change Transactions Closing on or After April 1, 2024

Starting next week, on April 1st, health care entities in California closing “material change transactions” will be required to notify California’s new Office of Health Care Affordability (“OHCA”) and potentially undergo an extensive review process prior to closing. The new review process will impact a broad range of providers, payers, delivery systems, and pharmacy benefit managers with either a current California footprint or a plan to expand into the California market. While health care service plans in California are already subject to an extensive transaction approval process by the Department of Managed Health Care, other health care entities in California have not been required to file notices of transactions historically, and so the notice requirement will have a significant impact on how health care entities need to structure and close deals in California, and the timing on which closing is permitted to occur....