WASHINGTON, July 11 (UPI) -- A U.S. judge refused to dismiss a whistle-blower lawsuit against a former Halliburton subsidiary and vacated an order protecting financial information.
In an opinion handed down Monday, U.S. District Judge James Gwin ruled in favor of Henry Barko, who worked for Kellogg, Brown & Root, now known as KBR, as a subcontract administrator. Barko sued Halliburton, KBR and two subcontractors under the False Claims Act in 2005, alleging the company overcharged the U.S. government while building laundry facilities at three bases in Iraq.
"Although KBR attempts to put a more positive spin on the allegations, Barko gives sufficient facts to survive a motion to dismiss," Gwin said. "Because his claims are plausible, they will not be dismissed."
The judge also ruled Halliburton had not shown disclosure of financial information would cause it great harm. He vacated protective orders imposed during discovery.
The False Claims Act was originally enacted during the Civil War to protect the government from overcharging by suppliers of military goods and services. It allows individuals to sue on behalf of the government, receiving a percentage of any recovered damages.
