House Hammers Hubzone Program
Client Alert | 1 min read | 03.31.09
Following the release of a GAO Report (GAO-09-440) on March 25, 2009, finding continued fraud and abuse in the SBA's Historically Underutilized Business Zone ("HUBZone") program, members of the House Small Business Committee stated that they would consider shutting down the program if the widespread fraud was not addressed immediately. The GAO report found that 19 firms who were ineligible for the HUBZone program had received $30 million in HUBZone contracts and $187 million on all federal contracts during FY2006 and 2007, largely as a result of the SBA's lack of internal controls in identifying fraudulent designations of principal offices and failures to comply with the 35 percent residency requirement.
Insights
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On September 5, 2025, the Federal Trade Commission (“FTC”) withdrew its appeals of decisions issued by Texas and Florida federal district courts, which enjoined the FTC from enforcing a nationwide rule banning almost all noncompete employment agreements. Companies, however, should not read this decision to mean that their noncompete agreements will no longer be subjected to antitrust scrutiny by federal enforcers. In a statement joined by Commissioner Melissa Holyoak, Chairman Andrew Ferguson stressed that the FTC “will continue to enforce the antitrust laws aggressively against noncompete agreements” and warned that “firms in industries plagued by thickets of noncompete agreements will receive [in the coming days] warning letters from me, urging them to consider abandoning those agreements as the Commission prepares investigations and enforcement actions.”
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