A settlement has been reached to resolve False Claims Act allegations against CA Inc.
The allegations arose from a lawsuit that claimed CA Inc, an information technology firm, made false statements and claims in the negotiation and administration of a General Services Administration (GSA) contract.
According to the Department of Justice, this settlement resolves allegations connected to a GSA contract awarded to CA for software licenses and maintenance services. GSA pre-negotiates prices and contract terms for subsequent orders by federal agencies. A price reduction clause in the GSA contract required CA to provide government customers discounts in line with commercial customers.
Reportedly, this settlement resolves allegations that CA did not fully and accurately disclose its discounting practices to GSA contracting officers. Specifically, this agreement resolves claims that CA allegedly provided false information about the discounts it gave commercial customers for its software licenses and maintenance services at the time the contract was negotiated in 2002 and was extended in 2007 and 2009. Additionally, the settlement resolves claims that CA violated the price reduction clause in the contract by not providing government customers with additional discounts when commercial discounts improved.
A former CA Software Israel LTD employee and whistleblower, Dani Shemesh, 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.
“GSA contractors must be honest and forthcoming when doing business with the federal government,” GSA Inspector General Carol Fortine Ochoa said in a statement. “American taxpayers deserve a fair deal.”
