Matson to Settle False Claims for $9.9M; Whistleblower to Get $2.5M

Hawaii-based Matson Navigation Company has agreed to pay $9.95 million to settle allegations that the company knowingly submitted or caused the submission of false claims in connection with bills for ocean fuel surcharges to the U.S. Department of Defense (DOD), the National Law Review reported last week.

Matson and Horizon Lines, a subcontractor for Matson, allegedly billed the DOD for transporting military cargo and household items by ocean when in fact a portion of it was shipped by rail.

The lawsuit was originally filed by Mario Rizzo, an Illinois freight consultant, under the whistleblower provision of the False Claims Act.  The Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Rizzo will receive $2.5 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 expose every kind of fraud against the 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.