Business

IT Company Facing False Claims Allegations Pays $45 Million

An information technology company agreed to pay $45 million to resolve claims that it lied about its discounts while negotiating and administrating a federal contract, a government watchdog announced Monday.

CA Inc. – a New York City IT management company – faced allegations that it gave false information about discounts provided to commercial customers when a General Services Administration (GSA) contract was negotiated in 2002 and extended in 2007 and 2009.

The settlement resolved those claims, as well as allegations that the company didn’t give GSA-required discounts, according to the agency’s inspector general. (RELATED: Feds Wasting Millions On Non-Competitive IT Contracts)

“Today’s settlement demonstrates our continuing vigilance to ensure that contractors deal forthrightly with federal agencies when seeking taxpayer funds,” Department of Justice Acting Assistant Attorney General Chad A. Readler said in a statement.

“We will take action against contractors who withhold information and cause the government to pay more than it should for commercially available items,” Readler said. (RELATED: Federal Office Building Exposed Gov’t Employees To Black Mold)

GSA Inspector General Carol Fortine Ochoa added that, “GSA contractors must be honest and forthcoming when doing business with the federal government. American taxpayers deserve a fair deal.”

Dani Shemesh, a former CA Software Israel LTD employee and whistleblower, first brought up the allegations in a lawsuit filed under the False Claims Act, which allows Shemesh to receive more than $10 million from the settlement.

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