Iraq War Contractor Agrees to Settle FCA Allegations for $108.75 Million
KBR Inc., a contractor involved in the Iraq War, has reached a settlement of $108.75 million to resolve False Claims Act (FCA) allegations. The settlement comes after more than 12 years of litigation and marks the largest-ever recovery for fraud stemming from the Iraq War.
The FCA case alleged that KBR Services charged the U.S. Army for unnecessary materials under the Iraq War logistics contract. Former KBR employees, Geoffrey Howard and Zella Hemphill Anderson, who acted as whistleblowers, brought the case to light.
KBR has denied any violation of the FCA or other laws and rules related to government contracting. The company stated that it reached a resolution to avoid the cost, risk, and distraction of a trial. The settlement also includes a denial of liability or wrongful conduct.
The LOGCAP III contract awarded to KBR aimed to support U.S. operations during the Afghanistan and Iraq wars and the “war on terror.” The contract required KBR to cross-level materials, meaning they should have checked for “excess” material before ordering new ones. The whistleblowers alleged that KBR frequently failed to perform these checks and lied to the Army about them.
The allegations claim that KBR knowingly ordered around $340 million in excess materials during the Iraq War. Much of this material was either turned over to the Iraqi government or abandoned at the end of the war. Contemporaneous emails and comments from KBR managers and executives suggest their awareness of the alleged scheme and cover-up.
The settlement represents a significant milestone for whistleblowers who sought to hold KBR accountable for its actions during the Iraq War. Moreover, law firms representing the whistleblowers have confirmed that they will receive 29 percent of the settlement.
To learn more about your options when filing a whistleblower claim, reach out to an experienced whistleblower attorney at Kardell Law Group today.