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.
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.
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.
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.
CA Inc., a major supplier of software to federal agencies, paid $45 million to settle a False Claims Act lawsuit by a VSG client who alleged that the company misrepresented to the Government the nature and extent of the pricing discounts that the company was providing to its commercial customers.
BlueCross/Blue Shield of Michigan, the fiscal intermediary for Medicare in Michigan, paid more than $27.6 million to settle qui tam whistleblower claims alleging that it cheated on quality control tests in order to misrepresent the quality of the auditing services it was providing for the Medicare program.
New York State paid $27 million to resolve allegations in a whistleblower lawsuit that it submitted false claims for federal funds meant for the training of social service workers.
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.
Motorola, Inc., in what was at the time the largest civil recovery ever by the General Services Administration (GSA), paid $15 million to settle GSA’s claims that the company had submitted false claims for goods sold pursuant to the Multiple Award Schedule.
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.
Blue Shield of California, a Medicare carrier, paid $12 million to settle allegations in a qui tam whistleblower action that it misrepresented the quality of claims processing services it was providing for the Medicare program.
CA Technologies agreed to pay over $11 million to settle allegations that the software giant violated the federal False Claims Act and similar state and local statutes through the fraudulent billing of hundreds of public agencies on software maintenance renewal contracts.
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.