Reese Marketos Obtains Historic False Claims Act Verdict

In September of 2021, Josh Russ, Andrew Wirmani, and Allison Cook led a two-week trial that secured a $36.1 million False Claims Act verdict against MD Helicopters in the case styled United States ex rel. Marsteller v. MD Helicopters, Inc., 5:13-cv-00830-AKK (N.D. Alabama). Reese Marketos represented two relators who alleged, among other things, that MD Helicopters fraudulently induced multiple Foreign Military Sales engagements by misrepresenting compliance with mandatory disclosure provisions in Army contracts. Specifically, the relators alleged that MD Helicopters failed to disclose conflicts of interest in the contracting process as required by the Contractor Code of Business Ethics and Conduct, FAR 52.203-13. The verdict is the first known False Claims Act verdict obtained as a result of misrepresentations of compliance with that regulatory and contractual requirement. The jury returned its unanimous verdict in just over one hour.