Archive for the ‘Defense Fraud’ Category

Lucent Technologies World Services, Inc. Settles $4.2 Million False Claim Act Allegations

On September 21, 2012, the Department of Justice announce that Lucent Technologies World Services, Inc. a subsidiary of Alcatel-Lucent, agreed to pay $4.2 million to settle the false claims allegations raised in the qui tam lawsuit U.S. ex. rel. Geoffrey K. Wilson v. Alcatel-Lucent, a foreign corporation, et al.

Lucent Technologies World Services, Inc.  (LTWSI) was awarded a $250 million contract with the U.S. Army in 2004 to build the Advanced First Responder Network, a 911 emergency response and first responder communications system designed to enable Iraqis to summon emergency personnel in times of emergencies. The allegations in the lawsuit brought by Geoffrey K. Wilson, a former LTWSI contract manager on the project, state that LTWSI submitted claims for payment for equipment, service and contract performance award fees based on inaccurate certifications that LTWSI preformed and successfully completed certain testing of the Network’s radio transmission sites, as well as validation of the entire network to ensure it was operational prior to acceptance by the United States and transfer to the Iraqi government.  These inaccurate certifications were submitted to the United States Army between January and July of 2005.

The claims settled by this agreement are allegations only and do not constitute a determination of liability.

Posted in Defense Fraud, False Certifications, False Claims, Qui Tam, SettlementsNo Comments

Defense Contractor Settles $37 Million False Claims Act Suit

ATK Launch Systems, Inc. agreed to pay the United States $37 million to settle allegations that it sold dangerous and defective illumination flares to the Army and the Air Force. The settlement requires ATK to pay $21 million and to provide an estimated $16  million worth of repairs.

The qui tam suit alleged that ATK knowingly delivered flares that were incapable of withstanding a 10-foot drop test.  The flares, used for nighttime combat, covert, and search and rescue operations, were used by U.S. forces in Afghanistan and Iraq.

The qui tam suit was initially brought by a former employee in federal district court in Salt Lake City, Utah in 2006.

Posted in Defense Fraud, SettlementsNo Comments

Whistleblower Complaint Leads to Investigation of Home Depot

The Department of Justice is investigating claims that Home Depot provided Chinese-made products to the U.S. Government in violation of the Buy American Act. Two employees of another government contractor, Actus Lend Lease, filed suit alleging that their company supplied products used in several military housing projects that were made in China and other “non-designated” countries. Before Actus Lend Lease settled its claims, attorneys discovered that its corporate partner Home Depot also was in violation of the Buy American Act.

In April, a federal judge denied Home Depot’s motion to dismiss the qui tam suit. Although the suit has been unsealed, the Department of Justice has not yet decided whether to intervene in the case. Trial is scheduled for early next year.

Posted in Defense FraudNo Comments

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