KBR Kickback Case Sent From Illinois Back to Texas After 8 Years

Kellogg Brown & Root Inc. convinced an Illinois federal court to transfer a False Claims Act suit accusing the company of issuing subcontracts in exchange for kickbacks under a Iraq logistics contract to the U.S. District Court for the Southern District of Texas.

Transfer is proper, even though the case has been pending for eight years in the Central District of Illinois, because KBR made the business decisions that allegedly defrauded the government in Texas, Chief Judge Sara Darrow said Monday.

KBR officials in Houston approved subcontracts allegedly tainted by kickbacks, processed subcontractor invoices, and billed the government, the court ...