Gen Digital Inc. Pays $55.1 Million Settlement After False Claims Act Violation.
Gen Digital Inc., formerly known as Symantec Corp., based in Tempe, Arizona, has agreed to a significant settlement of $55.1 million, concluding a decade-long legal battle under the False Claims Act. The settlement follows a four-week bench trial and includes $16.1 million in damages and $36.8 million in civil penalties, in addition to post-judgment interest and other associated costs.
The lawsuit centered on allegations that Symantec knowingly misrepresented its commercial pricing during the negotiation of a General Services Administration (GSA) contract. These misleading practices, spanning from 2006 to 2012, caused the GSA to accept and pay inflated prices for Symantec's products and services. The company’s failure to disclose accurate pricing information and their repeated breach of the Price Reduction Clause, which mandates GSA contractors to maintain competitive pricing, led to the government being overcharged.
“The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves,” said Brian M. Boynton, Principal Deputy Assistant Attorney General of the Civil Division. “The years spent litigating this case and taking it to trial demonstrate the department’s steadfast commitment to protecting taxpayer funds.”
The case, titled United States ex rel. Morsell v. Symantec Corp., was filed under the qui tam provision of the False Claims Act. This provision allows whistleblowers to file lawsuits on behalf of the government and receive a portion of the recovery. The case was initiated by Lori Morsell, a former employee of Symantec, who managed the relevant contract. While her share from the settlement has not been finalized, her whistleblower actions played a pivotal role in bringing the fraudulent claims to light.
Matthew M. Graves, U.S. Attorney for the District of Columbia, emphasized that this case sends a strong message to contractors who attempt to defraud the government. "“The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government. Because these schemes steal taxpayer dollars, the United States Attorney’s Office for the District of Columbia will be steadfast in its efforts to bring fraudsters to justice no matter the complexity of the matter, pursuing them through trial, if necessary, to secure a just outcome.” Mr. Graves said.
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