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In Short:
qui
tam cases predicated on alleged human trafficking
violations has begun to emerge.
The Result: Potential exposure to qui tam
claims heightens the risk of allegations of human trafficking in
business operations.
Looking Ahead: Companies contracting with
the federal government should consult with counsel to ensure
compliance with contractual and regulatory obligations related to
human trafficking and should implement risk mitigation strategies
where reasonably feasible.
Two recently unsealed
qui tam actions reveal
efforts by former employees of government contractors to bring
False Claims Act ( FCA ) actions predicated on claims of
human trafficking. Under the FCA, whistleblowers
( relators ), can file
Inc.,
13 the ASBCA rejected the
contractor s attempt to escape default arising from the
contractor s admitted nonperformance after the government
exercised its offset right. No dispute existed that the government
had terminated the contract because the contractor failed to
deliver the specified equipment by the contractually required
delivery date. The contractor nevertheless argued unsuccessfully
that the government should have excused the nonperformance of its
subcontractor due to lack of payment because the government had
withheld payments to the prime contractor based on problems the
prime had experienced on a separate contract effectively
exercising its offset right. The board held that the default
In Short:
qui tam cases predicated on alleged human trafficking violations has begun to emerge.
The Result: Potential exposure to qui tam claims heightens the risk of allegations of human trafficking in business operations.
Looking Ahead: Companies contracting with the federal government should consult with counsel to ensure compliance with contractual and regulatory obligations related to human trafficking and should implement risk mitigation strategies where reasonably feasible.
Two recently unsealed
qui tam actions reveal efforts by former employees of government contractors to bring False Claims Act ( FCA ) actions predicated on claims of human trafficking. Under the FCA, whistleblowers ( relators ), can file