Judge lifts default in lawsuit against military contractor

A federal judge has lifted a default in a massive false claims lawsuit against a Kuwaiti firm that has been indicted by a grand jury in Atlanta for allegedly overcharging the U.S. military.

Senior U.S. District Judge Robert Vining set aside the default entered a month ago by the clerk's office against Public Warehousing Co., now known as Agility, because the company had failed to file an answer to a whistle-blower lawsuit that was joined by the U.S. Attorney's Office. Vining granted the company's motion to vacate the default, which if allowed to stay in effect would have meant a determination would have had to be made to decide how much Agility must pay in damages, lawyers for the whistle-blower said.

In 2009, Agility was indicted by a federal grand jury in Atlanta for the alleged fraud. The company has pleaded not guilty and recently filed motions requesting the charges be dismissed.