IT Company Pays $45M to Settle GSA Pricing Fraud Allegations

IT company CA Inc. agreed to pay $45 million to settle an FCA case alleging that:

CA did not fully and accurately disclose its discounting practices to GSA contracting officers. Specifically, the agreement resolves claims that CA 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.

The whistleblower, a former employee, will receive $10.195 million for bringing the alleged fraud to the government’s attention.

Read the DOJ press release here.