Whistleblower On Government Contract Fraud To Receive $19.2 Million

A whistleblower, who claimed in a suit that NetApp, Inc., a data storage company from Sunnyvale, California, lied to the General Services Administration about discounts it extended other customers and failed to extend proper discounts to the GSA, will receive $19.2 million as part of a settlement between the NetApp and government according to a report in the Washington Post, “Company Accused of Contract Fraud To Pay GSA $128 Million.” The suit was filed under the False Claims Act, a federal law that allows persons not affiliated with the government to sue government contractors on behalf of the government. Successful claimants may receive 15 – 25% of the total settlement or recovery. As reported, the total settlement and payment by NetApp back to the government is $128 million. 

Robert L. Abell
www.RobertAbellLaw.com

L-3 Communications Whistleblower To Receive $720,000 Of Share Of Settlement

A whistleblower, an employee, Buster Roderigas, of an L-3 Communications subsidiary, L-3 Vertex Aerospace, will receive $720,00 of the company’s $4 million settlement with the Department of Defense, the Atlanta Journal-Constitution reports, “Whistle-blower Shares Settlement.”  Roderigas protected the public by blowing the whistle on fraudulent bills the company submitted for helicopter maintenance services on a contract in Iraq.  Roderigas will also receive $318,000 to cover his attorney’s fees in the case.  

 

When an private company employee blows the whistle on fraudulent billing submitted to the federal government and, as a result, the government recovers some of the money, the employee is entitled under the law to a percentage.  The law serves to protect the public by giving employees, who are positioned to blow the whistle, incentive to do so.  It is unlawful for a company to retaliate against an employee who has blown the whistle in this way. 

 

Robert L. Abell

www.RobertAbellLaw.com