Iraq Corporate Fraud Lawsuits Take Hit

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When a U.S. judge set aside a $10 million verdict against Custer Battles last week, it brought into question the ability of the government and whistleblowers to penalize companies that profited illegally from the war in Iraq. Custer Battles was found to have grossly inflated invoices to the Coalition Provisional Authority, but Judge T.S. Ellis, III ruled that invoices to the CPA were not proven to be invoices to the U.S. Government.

The lead lawyer for the whistleblowers, Alan Grayson, of Grayson & Kubli in McLean, Virginia, said they would appeal the decision to the United States Court of Appeals for the Fourth Circuit in Richmond, Virginia.

"If this turns out the way the law ends up, it will make it more difficult to prosecute fraudulent contractors in Iraq," Grayson said in a telephone interview. "But this is clearly not the final word on the subject."

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