KBR Liable on Some Iraq Kickback Claims After 14-Year Saga

Federal prosecutors have succeeded in part in a 14-year-old False Claims Act suit alleging Kellogg Brown & Root Inc. committed fraud under an Iraq logistics contract by seeking payments related to subcontracts tainted by kickbacks, a Texas federal court said Thursday.

The government demonstrated KBR included kickback fees in the LOGCAP III contract price KBR charged for two subcontracts involving the supply of trucks, refrigerated trailers, and truck-trailer units, Judge Kenneth M. Hoyt of the U.S. District Court for the Southern District of Texas said in his opinion partially granting summary judgment.

A KBR employee recklessly disregarded the fact that ...