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One Employee's Fraud Bars Company's Monetary Claim

Client Alert | 1 min read | 07.19.16

In Laguna Constr. Co. v. Carter (July 15), the Federal Circuit denied Laguna’s claim seeking $2.9 million in unpaid invoices because an employee pled guilty to accepting subcontract kickbacks in Iraq – fraudulent conduct that the court imputed to the company and ruled was a breach of the “Allowable Cost and Payment” clause. The court ruled that the ASBCA had jurisdiction to rule on the government’s affirmative defense of “prior material breach” that was based on a fraud conviction, that this affirmative defense does not require a separate CO final decision per Maropakis, and that the contractor’s fraud-based breach excused the government’s subsequent breach (failure to pay for the completed and invoiced work) – a reminder to contractors of the importance of ethics training and monitoring.

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Client Alert | 3 min read | 02.27.26

EEOC v. Coca-Cola Beverages Northeast, Inc.: Another Step Focused on the EEOC’s Goal of Eradicating Unlawful DEI-Related Practices

On February 17, 2026, the U.S. Equal Employment Opportunity Commission (EEOC) filed a complaint against Coca-Cola Beverages Northeast, Inc., in the United States District Court for the District of New Hampshire, alleging that the company violated Title VII of the Civil Rights Act of 1964 (Title VII) by conducting an event limited to female employees. The EEOC’s lawsuit is one of several recent actions from the EEOC in furtherance of its efforts to end what it refers to as “unlawful DEI-motivated race and sex discrimination.” See EEOC and Justice Department Warn Against Unlawful DEI-Related Discrimination | U.S. Equal Employment Opportunity Commission....