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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 | 02.11.26

Clicking All the Right Boxes: FTC Moves to Revive “Click-to-Cancel” Rule Following Eighth Circuit Vacatur

On July 8, 2025, the U.S. Court of Appeals for the Eighth Circuit vacated the Federal Trade Commission’s (FTC) Rule Concerning Subscriptions and Other Negative Option Plans, commonly known as the “Click-to-Cancel” rule. As detailed in a previous client alert, the rule was intended to regulate negative option plans[1]— such as subscriptions and automatic renewals — by imposing stringent requirements on businesses, including streamlined cancellation processes and enhanced disclosure obligations. The Eighth Circuit vacated the Click-to-Cancel rule because it found that the FTC had failed to comply with mandatory procedural requirements. As a result, the rule is no longer in effect, and businesses are not currently subject to its mandates....