Court Rules VS&G Qui Tam Whistleblower Lawsuit against Software Giant CA, Inc. May Go Forward
Washington, D.C., March 31, 2015. The U.S. District Court for the District of Columbia denied a motion to dismiss filed by CA, Inc., and ruled that qui tam whistleblower Dani Shemesh could continue to pursue his False Claims Act lawsuit alleging that CA violated the False Claims Act by making misrepresentations to the Government in connection with the sales of software licenses and maintenance to the General Services Administration (“GSA”) from August 2003 to 2006. In another ruling issued on the same date, the Court denied CA’s motion to dismiss similar allegations asserted by the U.S. Department of Justice and Shemesh that cover a later timeframe.
In his Complaint, Shemesh alleges that CA represented to GSA that CA did not provide discounts off its list prices to commercial customers who purchased maintenance of CA’s products, and that CA offered to sell maintenance to the GSA at only a slight discount off of the list price. Shemesh alleges that CA’s statement about discounts to commercial customers was false, and that CA often sold maintenance to commercial customers at far greater discounts than it offered to GSA.