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DAM Contractor's Underbidding Insufficient For FCA Liability

Client Alert | 1 min read | 01.21.05

Affirming summary judgment, the D.C. Circuit in U.S. ex rel. Bettis v. Oderbrecht Contractors (Jan. 11, 2005) held that evidence that a dam contractor (1) underbid, (2) reaffirmed its underbid, and (3) claimed that it would use cost-saving measures it never employed did not permit the conclusion that the contractor fraudulently induced the Army Corps of Engineers to award it the contract. The Court acknowledged that claims submitted for payment under a contract that was fraudulently induced can give rise to civil False Claims Act liability, but found in this case that the contractor's underbid was not a promise that its estimated costs were accurate, only that it would perform the dam work at the unit prices it bid, such that submission of claims for payment under the contract, including claims for equitable adjustments above the contract price, were not false claims.

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Client Alert | 4 min read | 03.25.26

NAIC Intensifies AI Regulatory Focus: What Health Insurance Payors Need to Know

The National Association of Insurance Commissioners (NAIC) is intensifying its oversight of how insurers use AI — and the pace of regulatory activity shows no signs of slowing. Over the past several months, the NAIC has published a formal Issue Brief staking out its position on federal AI legislation, launched a multistate AI Evaluation Tool pilot aimed at examining insurers’ AI governance programs, and continued to expand adoption of its AI Model Bulletin across state lines. These developments continue a trend towards enhancing regulation; the NAIC adopted AI Principles in 2020 and a Model Bulletin in 2023 clarifying that existing insurance laws apply to AI systems and establishing expectations for governance, documentation, testing, and third-party oversight. That Model Bulletin has now been adopted in approximately 24 states....