Defective Products & Services, Testing & Quality Assurance Violations

What are Defective Products or Services and What are Testing & Quality Assurance Violations?

A contractor can defraud the Government by supplying products or services that it knows are defective or otherwise falls short of significant contract specifications, for example, by providing parts that are inferior to those specified in a contract, or hiring personnel who do not have the required qualifications, or fails to complete required testing or fulfill other quality assurance measures.

Government contracts generally provide detailed specifications on the products to be provided or the tasks to be performed. Government contracts may also require that work be performed only by persons with specified qualifications. Contractors sometimes cheat the Government by knowingly supplying products that are defective or do not otherwise meet the specifications of the contract.

For example, contractors sometimes use unapproved or inferior parts in manufacturing the product. Contractors may also cut corners by failing to complete required testing or other quality assurance measures, and falsifying test results. Contractors can also cheat the Government by employing personnel who are not qualified under the terms of the contract to perform the tasks they are doing, or by knowingly using subcontractors who engage in any of the schemes described here. These “shortcuts” can compromise the integrity of the products or services provided and can put lives at risk. Such misconduct may often be the basis for a qui tam False Claims Act lawsuit.

VSG Qui Tam Lawyers Are Experienced in Handling Defective Goods & Services Cases

VSG qui tam lawyers have successfully litigated numerous False Claims Act whistleblower cases where contractors were alleged to have supplied defective products, falsified test results, ignored quality assurance requirements, and/or used unqualified personnel to perform contract work.

For example, VSG partner Janet Goldstein represented two whistleblowers in a False Claims Act qui tam lawsuit against Teledyne Relays, alleging that Teledyne provided substandard electronic relay switches for use in the space shuttle, military satellites, and other critical weapons systems, and that it falsified test results. Teledyne paid the United States $88 million in civil damages and $17 million in criminal fines to settle the matter.

ArmorGroup North America and its affiliates paid $7.5 million to settle a False Claims Act qui tam lawsuit brought by a VS&G client who alleged misrepresentations about the qualifications of security guards who were guarding the U.S. Embassy in Kabul, Afghanistan.

VSG partner Rob Vogel represented a whistleblower in a False Claims Act qui tam lawsuit against M/A-Com, a defense contractor, alleging that M/A-Com was falsifying testing documents for a product that was being used on military aircraft. M/A-Com settled the matter for $3 million.

While working as a trial attorney for the Department of Justice, Civil Commercial Frauds Section, Mr. Vogel was the lead lawyer in a qui tam case that alleged that Textron Lycoming was manufacturing defective engines that were being used on U.S. Coast Guard helicopters. After Mr. Vogel prevailed in litigation before the U.S. Court of Appeals for the D.C. Circuit on an important issue concerning the legal interpretation of the False Claims Act, see Avco Corp. v. United States Department of Justice, 884 F.2d 621 (D.C. Cir. 1989), the defendant settled the case with a payment of more than $17 million.