Kathryn Hickey and David Shafer, PilieroMazza M&A Attorneys, Represent Zentech Manufacturing, Inc. in Acquisition by Blackbern Partners
BALTIMORE, MD, MAY 28, 2019: Kathryn Hickey and David Shafer led a team of PilieroMazza attorneys from a cross section of the firm’s practice areas – including Business & Transactions Law , Government Contracts , and Labor & Employment – to represent client Zentech Manufacturing, Inc. (Zentech), a Baltimore, MD-based, high-reliability electronics contract manufacturer, in its recent acquisition by BlackBern Partners LLC , a New York City based private equity firm. The partnership created by the acquisition, which closed on May 10, 2019, will accelerate efforts to deliver leading electronics manufacturing services (EMS) to the defense, . . . Read More
BLOG: Corporate Transactions and Affiliation Pitfalls
As a small business grows and expands, it may have opportunities to bring on new investors, provide equity incentives to obtain, incentivize and retain key employees and directors, and enter into acquisitions and other transactions with other entities. These investments and transactions can support the business’s stability and future growth but may also raise unintended affiliation issues. Because the Small Business Administration (SBA) includes the business’s affiliates when determining its size, pursuing these transactions may affiliate the business with other . . . Read More
BLOG: Halting Employee’s Right to Report Cybersecurity Noncompliance Can Land Government Contractors in Hot Water
Last week signaled a potential rude awakening for government contractors subject to cybersecurity requirements. A California U.S. district court ruled that allegations against Aerojet Rocketdyne could progress following a former employee’s complaint that the company terminated his employment after he disclosed cybersecurity failures to the company’s board of directors and refused to sign documents indicating that the company was compliant. Among the employee’s chief allegations is a charge that the company violated the False Claims Act by falsely representing its . . . Read More
BLOG: Challenging a Negative CPARS: What Remedies Are Available?
As any experienced government contractor knows, poor performance under a federal contract can have significant consequences. Not only can it lead to contract termination and damages, but it can also affect a contractor’s ability to obtain future work, as agencies are generally required to consider past performance information posted on the Contractor Performance Assessment Reporting System (“CPARS”) when making source selection decisions. Because a CPARS rating is generally valid for 3 years (6 years for construction/architect-engineer contracts), a contractor may . . . Read More
BLOG: In Win for Whistleblowers, Supreme Court Clarifies Statute of Limitations for False Claims Act Actions Where Government Elects Not to Intervene
Recently, in Cochise Consultancy, Inc. v. United States ex rel. Hunt, the Supreme Court resolved a circuit split and clarified in a unanimous decision that the statute of limitations period for qui tam actions where the Government declines to intervene could extend to ten years, if the plaintiff can show when the Government knew or should have known of the material facts related to the alleged false claim. The Supreme Court noted that under the False Claims Act, 31 U.S.C. § . . . Read More
Weekly Update for Government Contractors and Commercial Businesses – May 17, 2019
If you have questions concerning the content below, please visit this link . FALSE CLAIMS ACT / LITIGATION U.S. Supreme Court – According to Law360, the U.S. Supreme Court ruled unanimously that the “government knowledge” statute of limitations applies in False Claims Act cases regardless of whether the government intervenes, expanding the time relators have to file FCA claims by up to four years in some circumstances. Justice Department Issues New False Claims Act Guidance on Cooperation Credit That May . . . Read More
BLOG: Justice Department Issues New False Claims Act Guidance on Cooperation Credit That May Reduce FCA-Defendant Liability
Last week, on May 7, 2019, the U.S. Department of Justice (“DOJ”) announced the issuance of formal guidance to clarify the manner in which the DOJ allocates credit to defendants who cooperate with government investigations in False Claims Act (“FCA”) matters. In a press release from the Office of Public Affairs, the DOJ explained that it “has taken important steps to incentivize companies to voluntarily disclose misconduct and cooperate with [DOJ] investigations[.]” Specifically with regard to the FCA, the DOJ . . . Read More
Insider Threats and Risk Mitigation Strategies
Managing and Incentivizing Employees
Presented by Sarah Nash and Dave Shafer Click here to view the recorded session. Attracting and retaining talent is a key challenge for many businesses in this current economic cycle where low unemployment and access to cleared employees is a common challenge. In this webinar, focuses on achieving business goals through attracting, incentivizing, and managing employees. The presenters reviewed the various options available to companies with differing corporate structures, at different stages of growth, and with differing objectives. They also discussed how . . . Read More
BLOG: SBA Proposes to Implement Certification Requirement for WOSB/EDWOSBs and Revise Economic Disadvantage Criteria for 8(a) Eligibility
A few years ago, we wrote about how through the 2015 NDAA, Congress directed SBA to end self-certification for WOSBs and EDWOSBs and implement a certification process. On May 14, 2019, SBA issued the proposed rule which, if finalized, would implement a certification requirement for WOSBs and EDWOSBs. In this proposed rule, SBA has also proposed revising the economic disadvantage criteria for 8(a) companies, particularly for initial eligibility purposes, and to make these consistent between the 8(a) and EDWOSB programs. WOSB/EDWOSB . . . Read More