U.S. Files Complaint Against CA Inc. Alleging False Claims Act Violations
The United States filed a complaint against technology company CA Inc. for violating the False Claims Act, the Department of Justice announced yesterday. CA Inc. manufactures and sells information technology products and is headquartered in New York.
In its complaint, the government alleged that CA knowingly overcharged the government for software licenses and maintenance in various ways. In September 2002, CA entered into a General Services Administration (GSA) contract to provide software licenses, software maintenance, training and consulting services to various government agencies. The government alleges that CA provided incomplete and inaccurate information to GSA contracting officers during negotiation of contract extensions. The government also alleges that CA failed to truthfully update its discounting practices during the life of the GSA contract. CA repeatedly certified to GSA that its discounting policies and practices had not changed, when in fact its discounts to commercial customers had increased.
Some of the allegations that are the subject of the government’s complaint were filed in a lawsuit originally brought by Dani Shemesh, a former employee of CA Israel Ltd., under the whistleblower provisions of the False Claims Act, which allow private parties with knowledge of fraud against the government to sue on behalf of the government. The Act provides for the recovery of triple damages and penalties and allows the government to intervene and assume primary responsibility for litigating the lawsuit, as it has elected to do in this case.
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.