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Intentional Low Bid Is Not A False Claim

Client Alert | 1 min read | 02.26.04

In U.S. ex rel. Bettis v. Odebrecht Contractors of Cal. (Jan. 28, 2004), the D.C. federal district court granted summary judgment in the contractor's favor, rejecting numerous False Claims Act allegations, including, most notably, the relator’s theory that the contractor had fraudulently induced the government to enter into a construction contract by intentionally underbidding for the project, while allegedly planning to submit false changes claims during performance. While expressly recognizing that false estimates could be the basis of an actionable false claim, the court ruled that the mere knowing submission of an unreasonably low bid (at least in the absence of any subsequent illegitimate request for adjustment) did not, by itself, cause the government to pay out funds to which the contractor was not entitled.

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Client Alert | 3 min read | 12.13.24

New FTC Telemarketing Sales Rule Amendments

The Federal Trade Commission (“FTC”)  recently announced that it approved final amendments to its Telemarketing Sales Rule (“TSR”), broadening the rule’s coverage to inbound calls for technical support (“Tech Support”) services. For example, if a Tech Support company presents a pop-up alert (such as one that claims consumers’ computers or other devices are infected with malware or other problems) or uses a direct mail solicitation to induce consumers to call about Tech Support services, that conduct would violate the amended TSR. ...