Gen Digital Inc. Pays $55.1 Million Settlement After False Claims Act Violation

Gen Digital Inc. Pays $55.1 Million Settlement After False Claims Act Violation.

Gen Digital Inc., formerly known as Symantec Corp., based in Tempe, Arizona, has agreed to a significant settlement of $55.1 million, concluding a decade-long legal battle under the False Claims Act. The settlement follows a four-week bench trial and includes $16.1 million in damages and $36.8 million in civil penalties, in addition to post-judgment interest and other associated costs.

The lawsuit centered on allegations that Symantec knowingly misrepresented its commercial pricing during the negotiation of a General Services Administration (GSA) contract. These misleading practices, spanning from 2006 to 2012, caused the GSA to accept and pay inflated prices for Symantec’s products and services. The company’s failure to disclose accurate pricing information and their repeated breach of the Price Reduction Clause, which mandates GSA contractors to maintain competitive pricing, led to the government being overcharged.

“The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves,” said Brian M. Boynton, Principal Deputy Assistant Attorney General of the Civil Division. “The years spent litigating this case and taking it to trial demonstrate the department’s steadfast commitment to protecting taxpayer funds.”

The case, titled United States ex rel. Morsell v. Symantec Corp., was filed under the qui tam provision of the False Claims Act. This provision allows whistleblowers to file lawsuits on behalf of the government and receive a portion of the recovery. The case was initiated by Lori Morsell, a former employee of Symantec, who managed the relevant contract. While her share from the settlement has not been finalized, her whistleblower actions played a pivotal role in bringing the fraudulent claims to light.

Matthew M. Graves, U.S. Attorney for the District of Columbia, emphasized that this case sends a strong message to contractors who attempt to defraud the government. ““The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government. Because these schemes steal taxpayer dollars, the United States Attorney’s Office for the District of Columbia will be steadfast in its efforts to bring fraudsters to justice no matter the complexity of the matter, pursuing them through trial, if necessary, to secure a just outcome.” Mr. Graves said.

The False Claims Act (FCA) is a U.S. federal law that targets fraud against the government. It allows the government to sue individuals or entities that submit fraudulent claims for payment. The FCA’s key feature is its qui tam provision, which lets private citizens, or whistleblowers, file lawsuits on behalf of the government and receive a share of any recovery.

The law holds violators accountable by imposing hefty fines and requiring repayment of three times the amount lost due to fraud. It also protects whistleblowers from retaliation, offering remedies like reinstatement and back pay. The FCA has been crucial in combating fraud in sectors like healthcare, defense, and contracting. Initially passed during the Civil War, it now plays a vital role in safeguarding taxpayer funds.

Gen Digital Inc., previously known as Symantec Corporation, is a global cybersecurity company based in Tempe, Arizona. The company provides a wide range of security solutions and services to protect businesses and individuals from cyber threats. Gen Digital specializes in areas such as data security, network protection, cloud security, and identity protection, aiming to safeguard digital environments from evolving threats.

Symantec, the company’s former name, was founded in 1982 and became one of the most recognized brands in cybersecurity. However, in 2019, Symantec announced a strategic shift, selling its enterprise security business to Broadcom and focusing on consumer-oriented products. In 2021, the company officially rebranded to Gen Digital, reflecting its evolution and broadening its product offerings beyond just cybersecurity.

Gen Digital operates with a portfolio of trusted security brands, including Norton, LifeLock, and Avast, and continues to develop tools for digital privacy and security protection. The company serves millions of consumers globally, helping them manage their online safety and privacy.

 

Stoli Group USA Files for Bankruptcy Amid Financial Struggles and Cyberattack

 

Leave a Reply

Your email address will not be published. Required fields are marked *