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Government Contracts Claims Litigation and Alternative Fee Arrangements

Client Alert | less than 1 min read | 07.19.17

In AFA Considerations For Gov't Contract Claims Litigation, Steve McBrady discusses several hot topics in government contracts litigation, including (1) business objectives driving a renewed focus on claims litigation; (2) financial considerations driving contractor (and law firm) decision-making; (3) key strategy assessments for clients and their outside lawyers to make at the outset; and (4) the emergence of creative, value-based billing structures that put a premium on achieving successful outcomes while sharing financial risk.

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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....