Axway to Settle Contract Fraud Claims For $6.2M; Whistleblower to Get $1.2M
Axway, Inc. has agreed to pay the United States $6.2 million to settle allegations under the False Claims Act that it and its predecessors provided the General Services Administration (GSA) with defective pricing information in order to obtain and maintain a contract permitting them to sell software licenses and related services to federal agencies at inflated prices, the Department of Justice announced last week.
Axway, Inc. allegedly provided GSA with commercial pricing information that was not current, accurate and complete during the initial negotiation of the contract. As a result, the United States alleges that the contract that was awarded contained pricing that was less advantageous to the government than would have been negotiated had accurate and complete disclosures been made. In addition, the United States alleges that when the contract was renewed, Axway Inc. failed to provide GSA with accurate and complete commercial pricing disclosures. Finally, Axway Inc. failed to comply with the price reduction clause of the contract resulting in allegations from the United States that the contract contained inflated prices, and that numerous government agencies relied on these inflated prices and overpaid for their purchases of software and related services.
The lawsuit was originally filed by Kenneth Marcus, a former employee, under the whistleblower provisions of the False Claims Act. The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery. Marcus will receive $1.2 million as his portion of the settlement.
The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments. We have years of experience representing whistleblower clients who uncover fraud of every kind perpetrated against our government including, health care fraud, contract fraud, and tax fraud. Read more about our expertise in False Claims Act cases and how you can take action.