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Civil False Claims Act: Fourth Circuit Holds That a "False Claim" Requires an "Objective Falsehood," Rejects Falsity Based on Disputed Legal Question, Requires Allegations of Materiality to Satisfy Rule 9(b) and Affirms Arbitration of Section 3730(h) Claims by John T. Boese Fried, Frank, Harris, Shriver & Jacobson LLP Washington Office
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April 13, 2009
Previously published on May 20, 2008
Last Friday, the Fourth Circuit Court of Appeals affirmed the dismissal of a qui tam case arising out of an Iraq "task order" contract alleging that the defendant fraudulently induced the Army to issue a task order for transportation services based on an allegedly false misrepresentation that it would comply with the task order's maintenance and safety requirements.
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