U.S. Dismisses False Claims Act Case Against KBR

  U.S. Dismisses False Claims Act Case Against KBR

Business Wire

HOUSTON -- November 15, 2012

KBR (NYSE: KBR) announced today that the United States has voluntarily
dismissed its False Claims Act case it filed against the company.

On April 1, 2010, the United States sued KBR for damages claiming that KBR had
violated the False Claims Act by billing under LOGCAP III, which is KBR’s
logistics support contract with the Army. These costs were associated with
armed private security contractors in Iraq.

KBR is pleased that the Government decided to dismiss the False Claims Act
case. KBR has faithfully supported American troops in Iraq and has performed
its work in support of the Army with professionalism and in full compliance
with its contract and the law. KBR has maintained that the LOGCAP contract did
not prohibit the use of private security contractors.

The use of armed private security contractors was both reasonable and
necessary given the dangerous, life-threatening conditions under which KBR and
its subcontractors were asked to perform in Iraq.

The Government’s voluntary dismissal of the False Claims Act case was the
right thing to do, and KBR is committed to continuing its work in support of
the American military.

KBR is a global engineering, construction and services company supporting the
energy, hydrocarbon, government services, minerals, civil infrastructure,
power, industrial, and commercial markets. For more information, visit


Zac Nagle, 713-753-5082
Vice President, Investor Relations and Communications
Media Relations Hotline:
Marianne Gooch, 713-753-3800
Director, Corporate Communications
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