KBR’s request to dismiss false claim lawsuit denied
U.S. District Court Judge Royce Lamberth has ruled against the largest private contractor in Iraq and Afghanistan in a lawsuit brought by the U.S. government. Houston based contractor KBR Inc.’s request to dismiss a $100 million lawsuit involving false claims for private security in Iraq was denied on August 3. Judge Lamberth did dismiss claims for unjust enrichment and payment by mistake, but has allowed the government to proceed with its allegations of breach of contract and false claims. The lawsuit was filed in April 2010 for impermissible costs paid from 2003-2006. At the time, KBR and 33 subcontractors were providing logistical support for the government in Iraq and Afghanistan, including food, mail, laundry and transport services.
The government claims that they were billed by KBR for private security. Additionally, the government alleges that KBR violated their contract when they failed to obtain Army authorization for arming subcontractors and when they used security contractors who were not registered with the Iraqi Minister of the Interior. KBR disputes the claims, alleging that the government did not provide protection for its employees and the lawsuit is a means for the government to avoid reimbursing KBR for necessary security. KBR also cites a lack of clarity in their contract and the increasingly challenging security conditions in Iraq.