On December 2, the U.S. Department of Justice (DOJ) announced that Gen Digital Inc. (formerly known as Symantec Corp.) paid $55.1 million in a False Claims Act (FCA) judgement stemming from a qui tam whistleblower lawsuit.
Following a four-week bench trial, Gen Digital was found liable “for making knowing false claims to the United States when it mispresented its commercial sales practices during the negotiation and subsequent performance of a General Services Administration (GSA) contract,” according to the government.
The government specifically alleged that Gen Digital “made false statements to GSA during contractual negotiations in 2006 and early-2007 and continued to falsely certify throughout the performance of the contract through Sept. 30, 2012, that its disclosures of its commercial sales practices were current, accurate and complete.”
The case was initiated when Lori Morsell, who administered the contract at issue for Symantec, filed a qui tam whistleblower suit alleging the fraud. Under the False Claims Act’s qui tam provisions, individuals may file lawsuits alleging government contracting fraud on behalf of the United States. In successful qui tam cases, whistleblowers are eligible to receive between 15 and 30% of the settlement or judgement.
According to the DOJ, Morsell’s share of the recovery has not been determined.
“The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division. “The years spent litigating this case and taking it to trial demonstrate the department’s steadfast commitment to protecting taxpayer funds.”
“The United States deserves fair prices and accurate information from GSA contractors,” said GSA Deputy Inspector General Robert C. Erickson. “This outcome is the result of hard work and dedication by a cross-functional team from the U.S. Department of Justice, GSA and GSA Office of Inspector General.”
In July 2023, a bipartisan group of senators introduced the False Claims Amendments Act of 2023, which address a few technical loopholes undermining the success of the FCA. The bill is widely supported by whistleblower advocates.
National Whistleblower Center (NWC) has issued an Action Alert calling on Congress to pass the bill.
Join NWC in Taking Action:
Demand that Congress strengthen the False Claims Act
Further Reading:
Bipartisan Legislation Unveiled to Strengthen False Claims Act
