WASHINGTON, DC --News Direct-- SFAA

The Surety & Fidelity Association of America (SFAA), a nonprofit, nonpartisan trade association representing all segments of the surety and fidelity industry, hails the Order entered by the United States District Court for the District of Columbia dismissing all claims against Hanover Insurance Company and Hudson Insurance Company under the Federal False Claims Act. In addition, all claims against Centennial and Michael Schendel, the surety agency and the account agent, were also dismissed.

In its Amicus Brief, ex rel. Andrew Scollick v. Vijay Narula, et al., SFAA argued Plaintiff claims would result in a novel and precedent-setting theory expanding liability to sureties for False Claims Act violations related to government determinations certifying contractors as minority businesses qualified for set-aside construction contracts. “We are extremely pleased with the court’s Order and were confident the court’s decision would align with the surety industry’s position, resulting in a positive outcome for the defendants, the surety industry, and most importantly, small, disadvantaged, and emerging contractors,” said Julie Alleyne, Vice President, Policy & General Counsel, SFAA. “Any other ruling would certainly have had a detrimental impact on the ability of these contractors to obtain bonding for federal construction projects and for surety companies to provide these essential bonds,” continued Alleyne.

SFAA also argued the...

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