Corning Incorporated Settles False Claims Act Allegations for $5.65 Million

Corning Incorporated, (Corning) headquartered in the State of New York, has settled False Claims Act allegations that through its Corning Life Science division it submitted false claims to the United States for reimbursement of laboratory research products sold to various federal agencies.  The false claims relate to a contract Corning Incorporated entered into in 2005 to sell laboratory research products to federal government entities through the General Services Administration’s Multiple Award Schedule program.  Under the Multiple Award Schedule program, a company enters a contract with the General Services Administration (GSA) and in exchange for gaining access to the government marketplace and the hundreds of government purchasers, a company agrees to disclose its commercial pricing policies and practices and abide by the contract terms.

The settlement resolves a qui tam lawsuit filed by whistleblower Kevin Jones under the False Claims Act provisions.  Mr. Jones was a former Corning Life Science sales representative.  The settlement resolves allegations that Corning did not disclose its commercial pricing policies and practices during contract negotiations with GSA and during the course of the contract’s administration.  Specifically, Corning knowingly failed to provide GSA with current, accurate and complete information regarding its commercial sales practices, including discounts offered to other commercial customers and that Corning knowingly made false statements regarding its sales practices and discounts.  Additionally, allegations were settled that Corning knowingly failed to comply with the price reduction clause of the GSA contract by not disclosing those discounts and that the discounts were actually higher than what Corning had disclosed to GSA.   Corning also failed to pass those discounts onto its government customers.  The United States government alleged that because of Corning’s actions, it received lower discounts and paid far more than it should have for Corning’s products.

For his role as a whistleblower, Mr. Jones will receive $904,000 of the government’s recovery under the provisions of the False Claims Act.

Posted in False Claims, Federal False Claims Act, Government Intervention, Healthcare Fraud, Mens Rea, Qui Tam, Settlements, Whistleblower LawsuitNo Comments

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