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Submitted by WWAY on Fri, 06/24/2011 - 12:45pm.

By MATTHEW BARAKAT Associated Press ALEXANDRIA, VA (AP) -- A federal judge has dismissed Blackwater founder Erik Prince from a civil lawsuit alleging his former security firm cheated the government in bills it submitted for protecting government employees in Iraq and Afghanistan. Two former Blackwater employees filed suit against Prince and his company in 2008, alleging that that the company overbilled the government for its work. In a ruling made public Friday, US District Judge T.S. Ellis III said there is no evidence that Prince participated or had direct knowledge of any of the allegedly false billing invoices. The case is still scheduled to go to trial next month, with the company itself remaining as a defendant. Prince no longer is associated with Blackwater, which now operates under the name Xe. (Copyright 2011 by The Associated Press. All Rights Reserved.)

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