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US Liable for Environmental Remediation Costs Under Contract Clauses

Client Alert | 1 min read | 11.04.11

On October 31, the Court of Federal Claims in Exxon Mobil Corp. v. U.S. held that the government was liable for environmental cleanup costs because it had breached the “Taxes” clause in three World War II-era contracts under which the government had agreed to pay “any new or additional . . . charges” required by federal, state, or local law “by reason of the production, manufacture, sale or delivery” of aviation gasoline.  Exxon continues the trend of recovery of environmental remediation costs under government contracts and is consistent with ongoing efforts to recover environmental remediation costs and toxic tort litigation defense costs under Public Law 85-804 indemnification provisions in Cold War-era contracts being conducted for clients by C&M.

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Client Alert | 3 min read | 04.14.26

DOJ’s False Claims Act Resolution Against IBM Signals Heightened Risk for Federal Contractors with DEI Programs

On Friday, April 10, 2026, the U.S. Department of Justice (DOJ) announced that International Business Machines Corporation (IBM) has agreed to pay just over $17 million to resolve allegations that it violated the False Claims Act (FCA) by failing to comply with federal anti-discrimination requirements incorporated into its federal contracts due to allegedly discriminatory diversity, equity, and inclusion (DEI) employment practices. This resolution marks the first FCA settlement secured by the DOJ under its Civil Rights Fraud Initiative, created in May 2025, and announced by then-Deputy Attorney General Todd Blanche as part of the administration’s coordinated efforts to target allegedly unlawful DEI practices. Per the agreement, the settlement is neither an admission of liability by IBM nor a concession by the United States that its claims are not well founded....