On May 5, 2009, reports surfaced that Murtha has allegedly used his position as chairman of the House Appropriations defense subcommittee to award government defense contracts to Murtech, his nephew's company. Murtech, owned by Robert C. Murtha Jr., received $4 million in 2008 from the Defense Department for engineering and warehouse service but allegedly has not competed any the work.Washington Post: Murtha's Nephew Got Defense Contract (May 5, 2009)

In May 2009, Congressman John Murtha's practice of awarding defense contracts to companies within his district, particularly Murtech, was questioned in the press. Murtech has received a $1.4 million dollar annual contract without competitive bidding and has also allegedly received millions more in government contracts for work that has not been completed. Julius Evans, a spokesman for the Pentagon, said Congressman Murtha has never contacted the U.S. Army command about Murtech and the congressman "has no say in its procurement decisions."Washington Post: Murtha's Nephew Got Defense Contract (May 5, 2009)

The Federal court found that a Federal employee is immune to lawsuits as long as the attorney general certifies that he was acting within his scope of employment at the time of the incident. The Attorney General certified that; Wuterich countered asking that he be allowed to conduct limited discovery on the scope of Murtha's employment. Murtha appealed.RCFP: Murtha's immunity claim upheld in defamation suit (April 14, 2009) UPI: Court blocks Marine's suit against Murtha (April 14, 2009)

On April 14, 2009, the appeals court found in Murtha's favor, saying that the underlying conduct—interviews with the media about the Iraq War—was well within Murtha's scope of employment. The case was sent back with the U.S. government named as the defendent. That case is expected to be dismissed.RCFP: Murtha's immunity claim upheld in defamation suit (April 14, 2009) UPI: Court blocks Marine's suit against Murtha (April 14, 2009)

Wuterich could next ask the U.S. appeals court in Washington to rehear the case, or next ask the U.S. Supreme Court for reviews. At the moment, Wuterich is awaiting trial for his role in the Haditha incident.RCFP: Murtha's immunity claim upheld in defamation suit (April 14, 2009) UPI: Court blocks Marine's suit against Murtha (April 14, 2009)