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No Out-Of-Pockets, No Interest

Client Alert | less than 1 min read | 02.10.06

The Federal Circuit in Richlin Security Serv. Co. v. Certoff (Jan. 31, 2006) reaffirmed that a contractor can obtain interest on its recovery from the date of the filing of its claim with the contracting officer, even if the amounts recovered had not yet been incurred, as long as the contractor eventually has out-of-pocket expense. This doomed Richlin's interest request, because only the government made out-of-pocket payments for the Service Contract Act deficiencies it claimed.

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Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....