Inchcape Shipping Services, one of the world’s largest providers of marine support services, agreed to pay $20 million to settle a VSG whistleblower lawsuit accusing Inchcape of overbilling the Navy for services provided to Navy ships in ports around the world. VSG’s clients were awarded $4.4 million, 22% of the settlement proceeds.
VSG’s qui tam lawyers, while in private practice and previously with the Department of Justice, have successfully represented whistleblowers and the government, winning many significant False Claims Act recoveries and qui tam settlements. Our whistleblower lawsuits have received national coverage in the media, including The New York Times, Wall Street Journal, Washington Post, Los Angeles Times, Boston Globe, and 60 Minutes.
The following are summaries of some of our cases.
ESM Group Inc., a manufacturer of magnesium products, paid $2 million to resolve allegations that it violated the False Claims Act by causing the sale of infrared countermeasure flares to the U.S. Army that did not conform to contract requirements, and by knowingly evading U.S. Customs duties on magnesium powder it imported from China.
M/A Com, Inc., a defense manufacturer, paid $3 million to resolve a qui tam whistleblower lawsuit alleging that it falsified testing documents for a product used on military aircraft.
Martin Marietta Corporation, a defense contractor, paid $5.3 million to settle a qui tam whistleblower lawsuit alleging that it double-billed the Government for engineering costs.
ArmorGroup North America paid $7.5 million to settle a qui tam whistleblower lawsuit alleging that it submitted false claims to the State Department on its contract to guard the U.S. Embassy in Kabul, Afghanistan.
Hughes Aircraft Company paid $10 million to settle claims in a qui tam whistleblower lawsuit alleging that it submitted defective cost and pricing data under the Truth in Negotiations Act (TINA) in connection with a U.S. Air Force procurement.
Pratt & Whitney paid $14.8 million to settle the government’s allegations that it violated the False Claims Act by diverting Foreign Military Sales Program funds to unauthorized purposes, including payments to an Israeli Brigadier General.
General Electric Company, in what was at the time the largest recovery for the government ever in a False Claims Act case, paid $59 million to settle a qui tam whistleblower lawsuit alleging that it had defrauded the Foreign Military Sales Program of the U.S. Department of Defense by diverting taxpayer funds to unapproved purposes, including payments to an Israeli Brigadier General.
A major defense contractor paid $82 million to settle a qui tam whistleblower lawsuit alleging that the contractor had falsely allocated commercial costs to government contracts.
Teledyne Inc. paid more than $115 million to settle claims in two qui tam whistleblower lawsuits that the company falsely certified testing of electromagnetic parts used in weapons systems and padded estimates on sole source contracts. Teledyne also plead guilty to 35 criminal counts of making false statements and paid a $17.5 million fine.
The Gallup Organization paid $10.5 million to resolve allegations that it defrauded the United States Government by submitting false and inflated labor hours and cost estimates in connection with price negotiations for fixed-price contracts to conduct polling for the U.S. Mint and State Department, and by obtaining Government contract work from FEMA while engaging in employment discussions with a FEMA official.