Fifth Circuit Breaks New Ground on Vicarious Liability Under the Anti-Kickback Act
Client Alert | 1 min read | 07.25.13
In U.S. ex rel. Vavra v. Kellogg Brown & Root, Inc. (July 19, 2013), the Fifth Circuit addressed, as a matter of first impression, whether the double damages provision of the Anti-Kickback Act (AKA) can be applied to a corporate entity under a vicarious liability theory or whether doing so would render the single damages provision that applies to corporate entities whose "employees" violate the AKA superfluous. The Fifth Circuit held that the AKA does allow for vicarious liability when an employee is acting either within her scope of employment or under "apparent authority," as defined by the common law of agency.
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On September 4, 2025, the Small Business Administration’s (SBA) Office of Hearings and Appeals (OHA) granted an appeal challenging SBA’s determination that a service-disabled veteran did not control an entity applying for Service-Disabled Veteran-Owned Small Business (SDVOSB) status based on a minority owner’s ability to block certain actions in the matter of VSBC Appeal of: Blue Skye Foods, LLC, SBA No. VSBC-442-A.
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