Gen Digital Inc., formerly known as Symantec Corp., has paid a substantial $55.1 million judgment in a significant False Claims Act case. The payment includes $16.1 million in damages and $36.8 million in civil penalties, plus additional costs and interest, concluding a decade-long litigation process.
Nature of the Fraud
The company knowingly made false claims to the United States by misrepresenting its commercial sales practices during negotiations with the General Services Administration (GSA). From 2006 through September 2012, Symantec falsely certified that its commercial sales practice disclosures were current, accurate, and complete.
The court found continuous violations of the Price Reduction Clause in Multiple Award Schedule contracts. This clause requires contractors to maintain GSA's price position relative to other customers, but Symantec's violations denied the government entitled discounts.
Legal Proceedings
A four-week bench trial in early 2022 revealed Symantec's liability for knowingly submitting false claims. The court determined that these false disclosures led GSA to accept and pay higher prices than necessary, directly impacting taxpayer funds.
Whistleblower Impact
This case emerged through the False Claims Act's qui tam provisions, initiated by Lori Morsell, who administered the contract for Symantec. As a whistleblower, she will receive a portion of the recovery, demonstrating the effectiveness of insider reporting in exposing government contract fraud.
Principal Deputy Assistant Attorney General Brian M. Boynton emphasized the Justice Department's commitment to holding contractors accountable for knowingly overcharging the United States. The GSA Deputy Inspector General highlighted the importance of fair pricing and accurate information from contractors.
The Role of Whistleblowers in Government Contract Fraud
Whistleblowers serve as crucial watchdogs in protecting taxpayer dollars and maintaining the integrity of government contracts. Their insider knowledge often provides the key to exposing complex fraudulent schemes that might otherwise go undetected.
Take Action Against Fraud
If you have knowledge of similar government contract fraud or pricing schemes, The Whistleblower Advocates either the New Jersey Attorneys or Philadelphia Attorneys can help. Our experienced team offers free, confidential consultations to evaluate potential False Claims Act violations and guide whistleblowers through the reporting process while protecting their rights. Don't let government contract fraud go unreported - your action could help protect millions in taxpayer dollars and ensure fair competition in government contracting.
Source: https://www.justice.gov/opa/pr/gen-digital-pays-551m-false-claims-act-judgment-knowing-overcharges-general-services?link_id=8&can_id=f87aac00a044a0da0c451889dc4f075a&source=email-fraud-in-america-blowing-the-whistle-to-protect-vulnerable-patients&email_referrer=email_2552424___from_3082361&email_subject=fraud-in-america-cybersecurity-fraud-101-and-how-whistleblowers-can-fight-it
This article is a news article for informational purposes only. The Whistleblower Advocates did not represent the parties identified in the story above.
