CA, Inc. to Settle Fraud Claims for $8M; Whistleblower Amount TBD
CA, Inc. (CA) has agreed to pay the United States $8 million to settle allegations that it violated the False Claims Act in connection with contracts administered by the General Services Administration (GSA) and the Department of Defense (DOD), the U.S. Attorney’s Office announced earlier this week.
The U.S. government, which purchased software maintenance services from CA, alleged that CA knowingly double-billed federal agencies by charging for periods of software maintenance for which the agencies had already paid. Specifically, when federal customers entered into software maintenance renewal agreements with CA, the company began the renewal periods on the day CA processed the order, rather than the day after the expiration of the customer’s then-existing maintenance period.
The government also claimed that CA prevented DOD from taking advantage of pre-paid software inventory and discounts available under several contracts known as Blanket Purchase Agreements (BPAs). CA allegedly steered DOD away from BPA purchases and toward purchases under more costly contracts, with the result that the government paid more than it should have for certain software.
The lawsuit was originally filed by Ann-Marie Shaw, a former CA 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. Shaw’s share of the settlement has not yet been determined.
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.