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IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND

UNITED STATES OF AMERICA ex rel KENNETH P. BROOKS

: : : : : : : : :

v.

CIVIL NO. L-00-1088

LOCKHEED MARTIN CORP., et al.

MEMORANDUM After the United States declined to intervene in Kenneth P. Brooks's qui tam action, his suit was unsealed and served on defendants, who moved to dismiss. The Court granted the motion, but gave plaintiff an opportunity to cure the defects in his complaint. Although the plaintiff has filed a second amended complaint, he fails to remedy the deficiencies in all three of its counts. Count I fails to allege fraud with the specificity required by Rule 9(b) of the Federal Rules of Civil Procedure. Count II alleges a conspiracy between a parent corporation and its wholly-owned subsidiaries, entities that under law cannot conspire with one another. Count III, which alleges retaliatory discharge, is barred by limitations. For the reasons stated herein, the Court will, by separate Order, GRANT the defendants' motion to dismiss. I. BACKGROUND1 A. Defendants' Background

In 1984, the Department of Energy ("DOE") awarded a wholly-owned subsidiary of Martin Marietta Corporation a contract to operate the Portsmouth Gaseous Diffusion Plant

Many of the facts and procedural history recited herein are restated from the Memorandum Opinion on the motion to dismiss the amended complaint, Docket No. 64 (Mar. 22, 2005).

1

("PORTS"), a uranium enrichment plant in Piketon, Ohio.2 The corporate parent guaranteed the performance of the subsidiary, Martin Marietta Energy Systems.3 In 1993, Martin Marietta Corporation formed another wholly-owned subsidiary, Martin Marietta Utility Services, Inc., to perform portions of the contract with DOE.4 In October of 1992, Congress created the United States Enrichment Corporation ("USEC") to privatize the government's uranium enrichment program.5 Effective July 1, 1993, the DOE leased the PORTS plant to USEC.6 Martin Marietta Corporation and its subsidiaries continued to operate PORTS under the original contract.7 On June 19, 1995, Martin Marietta merged with Lockheed Corporation to form Lockheed Martin Corp. Martin Marietta Energy Systems, Inc. merged into Lockheed Martin Energy Systems, Inc. Martin Marietta Utility Services, Inc. merged into Lockheed Martin Utility Services. All three entities (collectively, "Lockheed Martin") continued to perform their contractual duties for USEC at the PORTS plant until July 23, 1998.8 B. Relator's Background

According to Kenneth P. Brooks's ("Brooks") complaint, Martin Marietta Energy

2

Second Am. Compl., Docket No. 70, at

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