Adobe settles kickback lawsuit for $3M

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Adobe kickback lawsuit settlement overview: 

• Who: Adobe Inc. has agreed to pay $3 million to the U.S. government, with a portion of the funds going to three of the computer software company’s former managers.
• Why: The settlement resolved claims Adobe paid kickbacks to government-connected firms as a way to influence the purchase of Adobe software. 
• Where: Adobe software is used nationwide.

Adobe Inc. has agreed to pay $3 million to the U.S. government to resolve claims the computer software company paid kickbacks to government-connected firms as a way to influence the purchase of its software. 

Three of Adobe’s former managers accused the company in October 2017 of paying the firms a percentage of the sales it made on its software, something they alleged violated the federal Anti-Kickback Act. 

The complaint was filed on behalf of the U.S. Department of Justice (DOJ), which argued Abobe’s alleged actions led to false claims for payment getting submitted to federal agencies, in violation of the False Claims Act. 

“Those who do business with the government are prohibited from paying kickbacks, which can result in unnecessary purchases and increase costs to taxpayers,” Principal Deputy Assistant Attorney General Brian M. Boynton, head of the DOJ’s Civil Division, said in a statement. 

Adobe — which is not admitting to any liability for the claims — may still face criminal charges if the DOJ decides to pursue it, however the settlement resolves the civil allegations, Law360 reports. 

“We’ve cooperated with the government since it began its investigation in 2018 and there was no determination of liability by the DOJ nor is there an admission of liability by Adobe,” the company said, in a statement last week.

Adobe settlement includes $1.6 million going towards restitution

A total of $1.6 million of the settlement funds will go toward restitution, while the U.S. will pay $555,000 to the three former managers, as a reward for bringing the claims under the False Claims Act’s whistleblower provisions. 

The whistleblower provisions allow private parties to file complaints on behalf of the U.S. government, and receive a percentage of any money that is ultimately recovered, according to Law360.

A class action lawsuit was filed against Adobe in November 2018 by a Maryland photographer and videographer who argued the company’s Adobe Premiere Pro CC 2017.1 video editing software permanently deleted his files. 

Have you ever used Adobe software products? Let us know in the comments! 

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