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In the Courts

By ljnstaff | Law Journal Newsletters

Fifth Circuit Clarifies the Scope of the Anti-Kickback Act

On Feb. 3, the U.S. Court of Appeals for the Fifth Circuit partially reversed an Eastern District of Texas ruling finding that two employees of Kellogg Brown & Root, Inc. (KBR) acted on behalf of the company in accepting kickbacks for subcontract work on a United States Army contract. The published opinion of the panel of three judges stated that while Robert Bennett's behavior could be imputed to KBR under the Anti-Kickback statute, his son, James Bennett, did not have the appropriate level of managerial control to hold his employer liable for his behavior.

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