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No PRB Cost Adjustment For Segment Closings

Client Alert | 1 min read | 06.02.10

In related decisions filed on April 29, the Court of Federal Claims effectively precluded contractors from recovering any costs for unfunded post-retirement benefits (primarily retiree medical and life insurance) in connection with business segment closings, absent a specific contract provision promising to indemnify the contractor for the unfunded liability. In Raytheon v. U.S., the court held that benefits covered by so-called 401(h) subaccounts in the contractor's pension plan (a relatively uncommon situation) are not "pension benefits" and, therefore, are not subject to the segment-closing provisions of CAS 413; in Gen. Elec. Co. v. U.S., the court held that pay-as-you-go benefit plans covering retired employees and dependents (by far the more common situation) are not subject to the provisions of CAS 413 requiring "segment closing" adjustments for pension costs.

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Client Alert | 3 min read | 08.18.25

FCPA Enforcement Continues to Evolve with Newly Unsealed Indictment

On August 11, 2025, the U.S. Department of Justice (“DOJ”) announced that it had unsealed an indictment against two Mexican businessmen for alleged violations of the Foreign Corrupt Practices Act (“FCPA”). DOJ asserts that the defendants, both Mexican nationals living in Texas, paid bribes to officials at Petróleos Mexicanos (“PEMEX”), and its subsidiary, PEMEX Exploración y Producción (“PEP”) to secure contracts worth an estimated $2.5 million. These charges come amidst a period of uncertainty regarding FCPA enforcement following the Trump administration’s temporary pause on FCPA enforcement and the subsequent issuance of new investigation and enforcement guidelines....

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