IR&D Definition Clarified
Client Alert | 1 min read | 03.19.10
In a decision that should resolve finally nearly 40 years of disagreement between contractors and the government about the definition of Independent Research and Development (IR&D), the Federal Circuit has held in ATK Thiokol Inc. v. U.S. (Mar. 19, 2010), that R&D effort must be "specifically required" by the terms of a contract in order to be excluded from the definition of allowable IR&D costs, endorsing the contractors' argument that effort that is "implicitly" required in order to perform the contract or "necessary" to perform but not explicitly required by the contract is allowable IR&D. In addition, and perhaps even more important, the decision acknowledges more generally in its analysis of the distinction between direct and indirect costs that "CAS 402 gives the contractor considerable freedom in the classification of particular costs, so long as the contractor maintains consistency in making that determination."
Insights
Client Alert | 3 min read | 02.11.26
On July 8, 2025, the U.S. Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission’s (FTC) Rule Concerning Subscriptions and Other Negative Option Plans, commonly known as the “Click-to-Cancel” rule. As detailed in a previous client alert, the rule was intended to regulate negative option plans[1]— such as subscriptions and automatic renewals — by imposing stringent requirements on businesses, including streamlined cancellation processes and enhanced disclosure obligations. The Eighth Circuit vacated the Click-to-Cancel rule because it found that the FTC had failed to comply with mandatory procedural requirements. As a result, the rule is no longer in effect, and businesses are not currently subject to its mandates.
Client Alert | 3 min read | 02.10.26
UK FCA Proposes New Sustainability Disclosure Rules for Listed Companies
Client Alert | 3 min read | 02.09.26
Client Alert | 1 min read | 02.09.26
Worried Three’s a Crowd? Decline Intervention at Your Own Peril
