KBR to Pay $108 Million to Settle Logistics Contract Fraud Suit

KBR Inc. agreed to pay almost $109 million to settle a 12-year False Claims Act suit alleging that the company defrauded the US Army under a logistics contract, according to a Wednesday press release.

Whistleblowers Geoffrey Howard and Zella Hemphill filed the suit in March 2011 at the US District Court for the Central District of Illinois, alleging that KBR routinely ordered new materials under the LOGCAP III contract when excess quantities of the same items were already in warehouses in Iraq.

The recovery is the “largest cash settlement ever obtained in connection with Iraq war fraud,” the press release ...