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One Employee's Fraud Bars Company's Monetary Claim

Client Alert | 1 min read | 07.19.16

In Laguna Constr. Co. v. Carter (July 15), the Federal Circuit denied Laguna’s claim seeking $2.9 million in unpaid invoices because an employee pled guilty to accepting subcontract kickbacks in Iraq – fraudulent conduct that the court imputed to the company and ruled was a breach of the “Allowable Cost and Payment” clause. The court ruled that the ASBCA had jurisdiction to rule on the government’s affirmative defense of “prior material breach” that was based on a fraud conviction, that this affirmative defense does not require a separate CO final decision per Maropakis, and that the contractor’s fraud-based breach excused the government’s subsequent breach (failure to pay for the completed and invoiced work) – a reminder to contractors of the importance of ethics training and monitoring.

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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....