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Companies working in support of U.S. troops in Iraq are hauling Houston-headquartered defense contractor, Halliburton, into U.S. federal court with claims that the company stiffed them for hundreds of millions of dollars after they provided essential services in the war effort.

Former managers working for Custer Battles, a high-profile private security company in Iraq, are accusing the firm of using companies in the Cayman Islands and other "tax haven" countries to fraudulently overcharge on government contracts by tens of millions of dollars.