WASHINGTON, July 11 (Reuters) - A U.S. judge ruled on Monday that a whistle-blower case alleging fraud against a U.S. security contractor employed in Iraq could go ahead, but excluded any work paid for with Iraqi oil money.
In what is seen as a test case for U.S. companies working in Iraq, the judge left open a key question over the legal status of the U.S.-led occupation authority that paid the contractor and whether it was subject to U.S. law.
The case involves Custer Battles, an upstart security firm based in Rhode Island that had a contract with the U.S.-led Coalition Provisional Authority in 2003 to guard Baghdad Airport and a later logistical deal.
Former associates of the company sued under the False Claims Act that it defrauded the U.S. government of millions, a claim Custer Battles strongly denies.
Details here from Reuters AlertNet.