https://sputnikglobe.com/20230704/iraq-war-contractor-kbr-to-pay-143mln-to-settle-fraud-claims-1111649601.html
Iraq War Contractor KBR to Pay $143Mln to Settle Fraud Claims
Iraq War Contractor KBR to Pay $143Mln to Settle Fraud Claims
Sputnik International
Former Halliburton subsidiary KBR said it will pay more than $143 million to settle fraud allegations related to contracts the company won during the Iraq war. KBR said it continues to deny any liability or wrongful conduct.
2023-07-04T02:31+0000
2023-07-04T02:31+0000
2023-07-04T02:31+0000
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"KBR announced today that it has settled a legacy lawsuit pending in federal court, USA ex rel Howard v. KBR," the company said on Monday. "KBR will pay $108.75 million, approximately half of which in restitution damages, plus interest to the US government and will pay $34.95 million to the relators as attorney's fees." KBR said the lawsuit concerns the "cross-leveling" of materials and equipment procurement under the LOGCAP III contract in Iraq in the 2007-2011 time period. KBR said it continues to deny any liability or wrongful conduct. Under the Logistics Civil Augmentation Program (LOGCAP), the military tapped the private sector to handle logistics and support services to US and allied forces including during combat operations. In 2011, whistle-blowers Geoffrey Howard, and Zella Hemphill in a lawsuit accused KBR of violating the False Claims Act by purchasing new materials instead of cross-leveling, which means drawing from existing stockpiles. According to court documents, the plaintiffs said as a result KBR knowingly billed for "unreasonable and unallowable costs" that the government would not have paid for otherwise. KBR President and CEO Stuart Bradie applauded the settlement, saying it marked another milestone in its bid to resolve legacy legal matters to help reduce uncertainty and liquidity risk. Between 2003-2013, KBR received almost $40 billion in contracts related to the Iraq war, according to an analysis by The Financial Times. KBR spun off from Halliburton in 2006. Former vice president Dick Cheney was the chairman and CEO of Halliburton from 1995 to 2000.
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kbr, halliburton, iraq war, us, logcap, lawsuit, fraud
kbr, halliburton, iraq war, us, logcap, lawsuit, fraud
Iraq War Contractor KBR to Pay $143Mln to Settle Fraud Claims
WASHINGTON (Sputnik) - Former Halliburton subsidiary KBR said it will pay more than $143 million to settle fraud allegations related to contracts the company won during the Iraq war.
"KBR announced today that it has settled a legacy lawsuit pending in federal court, USA ex rel Howard v. KBR," the company said on Monday. "KBR will pay $108.75 million, approximately half of which in restitution damages, plus interest to the US government and will pay $34.95 million to the relators as attorney's fees."
KBR said the lawsuit concerns the "cross-leveling" of materials and equipment procurement under the LOGCAP III contract in Iraq in the 2007-2011 time period. KBR said it continues to deny any liability or wrongful conduct.
Under the Logistics Civil Augmentation Program (LOGCAP), the military tapped the private sector to handle logistics and support services to US and allied forces including during combat operations.
In 2011, whistle-blowers Geoffrey Howard, and Zella Hemphill in a lawsuit accused KBR of violating the False Claims Act by purchasing new materials instead of cross-leveling, which means drawing from existing stockpiles. According to court documents, the plaintiffs said as a result KBR knowingly billed for "unreasonable and unallowable costs" that the government would not have paid for otherwise.
KBR President and CEO Stuart Bradie applauded the settlement, saying it marked another milestone in its bid to resolve legacy legal matters to help reduce uncertainty and liquidity risk.
"We are proud of our work on LOGCAP III and of our broader, strong record of serving the armed forces," Bradie said in the statement. "This settlement is yet another milestone in our commitment to resolve legacy legal matters and it helps reduce uncertainty and liquidity risk."
Between 2003-2013, KBR received almost $40 billion in contracts related to the Iraq war, according to an analysis by The Financial Times.
KBR spun off from Halliburton in 2006. Former vice president Dick Cheney was the chairman and CEO of Halliburton from 1995 to 2000.
