The Rounds | Ep. 29 | FCA News with Tejinder Singh

Why It Matters

By narrowing fee awards and introducing civil‑rights‑focused FCA actions, the decisions could dampen whistleblower incentives and reshape how federal contractors manage DEI‑related compliance.

Key Takeaways

• Fifth Circuit denies both share and fees to relator in KBR case
• Ninth Circuit calls $38.5M multiplier award an abuse of discretion
• Sixth Circuit bars relator based on prior dismissed FCA claim
• Forward‑looking promises not considered false certifications under FCA
• IBM settles $17M DEI‑related FCA case, signaling DOJ’s new civil‑rights focus

Summary

The episode of "The Rounds" examines recent appellate decisions shaping fee awards and claim viability under the False Claims Act, plus a high‑profile IBM settlement.

In the Fifth Circuit, relator Conjurs lost both share and attorney‑fee entitlement in US X‑Rail v. KBR, as the court read §3730(d)(1) to require a share of proceeds before fees. The Ninth Circuit reversed a district court’s 1.75 × lodestar multiplier in US X‑Rail v. Academy Mortgage, deeming the recovery not “rare and exceptional.” The Sixth Circuit barred a relator in US X‑Anderson v. St. Elizabeth for alleged fraud already raised in a prior, dismissed action, and in US X‑Lin v. Detroit held that forward‑looking promises do not constitute false certifications.

Tejinder Singh highlighted the courts’ “generalist” approach, questioning the policy impact of denying fees and the ambiguity of “exceptional” standards. He noted the IBM settlement, described as the DOJ’s first civil‑rights fraud case, involved DEI‑linked bonus structures but lacked a clear contract nexus.

These rulings tighten fee recovery prospects for whistleblowers, potentially discouraging FCA litigation, while the IBM case signals DOJ’s willingness to pursue civil‑rights‑based FCA claims, prompting contractors to reassess compliance and disclosure strategies.

Original Description

EPISODE 29 | May 2026 | Produced for the Qui Tam Section of the Federal Bar Association

Tejinder Singh, an advisory board member of the FBA's Qui Tam Section, discusses recent developments in False Claims Act law with R. Scott Oswald, the section's programming chair.

The cases and topics discussed in this episode are:

00:00 U.S. ex rel. Conyers v. Kellog Brown & Root, Inc. (5th Cir.)

03:57 U.S. ex rel. Thrower v. Academy Mortgage Corp. (9th Cir.)

06:36 U.S. ex rel. Anderson v. Saint Elizabeth Medical Center, Inc. (6th Cir.)

08:27 U.S. ex rel. Lynn v. City of Detroit, Mich. (6th Cir.)

11:18 ‘IBM Pays $17 Million to Resolve Allegations of Discrimination Through Illegal DEI Practices’

Mr. Singh is a partner at Sparacino PLLC, and an appellate lawyer who represents FCA relators in forums including the U.S. Supreme Court. Mr. Oswald is managing principal of The Employment Law Group, P.C., and a frequent FCA litigator himself.

This episode of "The Rounds" was recorded over Zoom on May 21, 2026.

To join the Federal Bar Association, go to http://www.fedbar.org/membership/join