US Department Of Justice Encourages Whistleblowers To Come Forward Under US False Claims Act


The US Department of Justice announced a USD 23 million settlement on 13 October 2014 with the Boeing Company. Boeing allegedly submitted false claims for labour charges on maintenance contracts with the US Air Force for certain aircraft. The whistleblowers who filed the suit under the False Claims Act will receive a USD 3.9 million award. The Department of Justice announced in mid-September that it is increasing its review of False Claims Act complaints. Companies are advised to keep these developments in mind and to also have strong compliance/whistleblowing programs in place to prevent fraud.

According to the DOJ, Boeing wrongly charged labour costs under contracts with the US Air Force for the maintenance and repair of the C-17 Globemaster aircraft, one of the military's major systems for transporting troops and cargo throughout the world. The government alleged that the company deliberately and improperly billed a variety of labour costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts.

The False Claims Act imposes liability on persons and companies (typically federal contractors) that defraud governmental programs. The law includes a provision which allows private persons (the whistleblowers) to file suit for violations of the False Claims Act on behalf of the government...

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