The government appeals, contending the relators were not entitled to any share of the recovery because the settlement was not "proceeds of the action" under § 3730(d)(1), even though the government's receipt of the settlement was conditioned upon the dismissal of the relators' action with prejudice. We affirm.
In September 2004, the relators filed several related complaints on behalf of the United States alleging a number of computer equipment and software manufacturers (hereinafter the contractors) had engaged in fraud in connection with government contracts. More specifically, the relators alleged the contractors paid kickbacks to systems integration consultants (SICs) in exchange for the SICs recommending the contractors' products to the government rather than recommending some other company's products. The relators also alleged, by reason of the kickbacks, the contractors were defectively pricing contracts in violation of the FCA.
Judge(s): Kermit Bye
Jurisdiction: U.S. Court of Appeals, Eighth Circuit
Related Categories: Contracts , Government / Politics , International , Technology , Torts
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