CA Technologies has agreed to pay $45 million to settle a False Claims Act (FCA) lawsuit accusing the company of denying the federal government the same discounts it provided to its commercial customers.
The lawsuit was filed in 2010 by Israeli whistleblower Dani Shemesh, a former employee of CA Software Israel LTD. Mr. Shemesh alleged that the Manhattan-based technology-management software company, formerly known as Computer Associates, did not disclose its discounting policies when negotiating a contract with the U.S. General Services Administration (GSA) in 2002.
That contact required CA to provide the same discounts on products and services that it gave to its commercial customers – a standard requirement in many contracts between private enterprises and the U.S. government. CA’s contract with the GSA wad extended in 2007 and again in 2009.
According to the U.S. Department of Justice, CA “did not fully and accurately disclose its discounting practices to GSA contracting officers.” The company “provided false information about the discounts it gave commercial customers for its software licenses and maintenance services,” the lawsuit asserts.
“GSA contractors must be honest and forthcoming when doing business with the federal government,” said GSA Inspector General Carol Fortine Ochoa. “American taxpayers deserve a fair deal.”
Whistleblowers who file a False Claims Act complaint on behalf of the U.S. government are awarded up to 25 percent of the total recovery in cases the government backs and litigates. Whistleblower awards can be as high as 30 percent of the total recovery in cases that the U.S. government declines to actively participate.
Mr. Shemesh will receive $10.195 million, nearly the maximum whistleblower award for a government-intervened FCA case.
Source: U.S. Department of Justice