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Articles Posted in Contracting & Procurement Fraud

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Adobe Pays $3M to Settle Whistleblower Lawsuits over Alleged Kickbacks involving Government Software Sales

Three Adobe employees filed False Claims Act lawsuits exposing the scheme and will share a $555K whistleblower reward. Adobe Inc. (NASDAQ: ADBE) has agreed to pay $3 million to resolve allegations that it violated the False Claims Act by paying illegal kickbacks to software-reseller partners in return for their promotion…

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Supplier of Military-Grade Firefighting Materials Settles False Claims Act Allegations it Sold the U.S. Government “Defective” Fire-Suppression Foam

Georgia firm allegedly falsely certified that its firefighting foam complied with military specifications Georgia-based Fire Service Plus Inc. has agreed to pay $985,131 to settle claims that it violated the False Claims Act by knowingly supplying “substandard” and “defective” fire suppression foam to the U.S. military, the Department of Justice…

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Defense Contractor Pays $9M to Settle False Claims Act Whistleblower Lawsuit Involving Cybersecurity Noncompliance

Qui tam whistleblower alleged that Aerojet Rocketdyne misled the government regarding its compliance with cybersecurity standards Defense contractor Aerojet Rocketdyne (NYSE: AJRD) has agreed to pay $9 million to settle allegations it violated the False Claims Act by falsely certifying its compliance with federal cybersecurity requirements in connection with multiple…

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Qui Tam Relator Receives $4.6 Million Whistleblower Reward as Boeing Subsidiary Pays $25 Million to Settle False Claims Act Lawsuit over Inflated Costs of Drone Parts

Company allegedly gave government inflated cost and pricing data when negotiating no-bid contracts for drone-related military projects Insitu drone. The company settled False Claims Act allegations that it inflated the prices of parts sold to the U.S. Navy and the Special Operations Command (SOCOM). Insitu, Inc., a subsidiary of aerospace…

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Falsely Certifying Eligibility to Participate in Government Programs can Give Rise to Liability under the False Claims Act Post-Escobar, Court of Appeals Holds

Second Circuit rules that relevant government “payment decision” under Escobar included Veterans Administration’s initial decision to award contracts based on claim that contractor qualified as a “service-disabled, veteran-owned small business”—not just the VA’s subsequent decisions to make payments under those contracts In a key victory for the federal government and…

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Federal Contractor CDM Smith Pays $5.6 Million to Resolve Whistleblower Claims under the False Claims Act Arising out of Scheme to Overcharge Navy

Firm allegedly provided government with inaccurate cost data during contract negotiations, failed to disclose that estimates had been reduced by automation of manual tasks. Federal prosecutors have announced that CDM Smith, an environmental engineering and construction firm located in Fairfax, Virginia, has agreed to pay $5.6 million to resolve claims…

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When an Overly-Influenced Federal Agency Sides with the Accused under the False Claims Act: Whistleblower Claims, Materiality and “Regulatory Capture” in the Trinity Industries Appeal

Despite whistleblower claims, federal agency insists it wasn’t defrauded Guardrail spears driver’s side door of car in Gurnee, IL, in 2013. Harman alleged that the crash involved Trinity’s ET-Plus guardrail. The anti-fraud bar is focused on the upcoming oral argument in the appeal of the trial verdict in United States…