The software company CA Technologies, hit with False Claims Act allegations, has agreed to pay a $45 million settlement to bring an end to the GSA whistleblower lawsuit, the U.S. Department of Justice announced.
The settlement deal will resolve the allegations the GSA whistleblower lawsuit brought forward that the company violated the False Claims Act (FCA). According to the GSA whistleblower lawsuit claims, CA Technologies failed to be transparent about its discounting practices when dealing with General Services Administration.
Since the GSA whistleblower lawsuit has reached a settlement agreement, it never went to trial to determine whether or not CA Technologies was actually liable in these allegations.
“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds. We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items,” the Department of Justice said in a statement.
Around a quarter of the GSA whistleblower lawsuit settlement, or $10.2 million, will go to the whistleblower who brought these False Claims Act allegations against CA Technologies.
GSA Whistleblower Lawsuit
The GSA whistleblower lawsuit alleged that CA Technologies gave the General Services Administration false information about its discounts, and that the company had actually violated the price reduction clause.
The contract between CA Technologies and the GSA required that CA Technologies contractors fully disclose how they do business to the GSA so that the GSA could negotiate a fair price for government agencies making use of these services.
This is not the first successful settlement of a whistleblower lawsuit against CA Technologies. In 2013, the company agreed to a $11 million settlement over another whistleblower lawsuit.
Filing a Whistleblower Lawsuit
Whistleblowers are often employees or former employees who see potential fraud or illegal activities in their workplace against the government and report the fraud in a whistleblower lawsuit.
Although whistleblowers may be current employees of the company committing fraud, they are often former employees reporting fraud that they witnessed while at their job. Indeed, many potential whistleblowers may be worried that they will get in trouble for reporting fraud, and choose to keep silent or wait until they have left their position to accuse their former employers of fraud.
However, whistleblowers are often given a substantial incentive award for their reports, which can be between 15 and 30 percent of the settlement money from a whistleblower lawsuit. In the case of this GSA whistleblower lawsuit, the whistleblower was given around a 25 percent award, amounting to over $10 million.
If you believe you have been witness to some kind of fraud against the government, such as fraud under the False Claims Act, you may be eligible to file a whistleblower lawsuit on behalf of the government.
In general, whistleblower and qui tam lawsuits are filed individually by each plaintiff and are not class actions. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.
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If you believe that you have witnessed fraud committed against the government, you may have a legal claim. Whistleblowers can only join this investigation if they are reporting fraud against the government, meaning that the government must be the victim, and that the alleged fraud should be a substantial loss of money.
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