Court Rebuffs Qui Tam Relator, Says Contract Non-Compliance Is Not Fraud

The District Court for the Eastern District of Virginia has dismissed with prejudice a qui tam lawsuit targeting Kellogg Brown & Root Services, Inc. (KBR). United States ex rel. McLain v. KBR, Inc., write attorneys from Vinson & Elkins, draws a bright line “between claims of contractual or regulatory noncompliance and actions for fraud,” as it continues a line of Fourth Circuit opinions that have similarly defined and confirmed the distinction, effectively providing qui tam defendants with ammunition to resist nuisance settlements and “overreaching relators.”