In a significant decision for policyholders facing False Claims Act (“FCA”) claims, the Eastern District of Virginia granted judgment on the pleadings to a government contractor against its professional liability insurer. Guidehouse Inc. v. Continental Casualty Co., No. 1:25-cv-1601 (E.D. Va. Sept. 29, 2026). The court held that the insurer must cover the contractor’s $7.6 million qui tam settlement (less a $5 million retention) and its costs of responding to two DOJ civil investigative demands (“CIDs”). Notably, in so holding, the court determined that the policy’s Deliberate Acts exclusion for “dishonest” or “fraudulent” acts did not apply.

(more…)