Military Contractor Settles False Claims Act Investigation For $10 Million

December 8, 2014 — It is a violation of the False Claims Act for military contractors to deceive the government during contract negotiations about the contractor’s cost in supplying products or services. Military contracts are highly coveted and can be extremely profitable for many government contractors. But contractors must deal in good faith with the government. When they cheat the American people by inflating costs, the qui tam provisions of the False Claims Act authorize insider employees and others to bring a whistleblower lawsuit on the government’s behalf. When the case is tried or settled, the tipster is entitled to a share of any monies received.

A Colorado military contractor that allegedly filed unsubstantiated claims for reimbursement for electronic warfare antennas that the U.S. Army used in Improvised Explosive Devices has resolved the Justice Department’s False Claims Act investigation for $10 million.

First RF Corporation (First RF), the maker of antenna and radio systems, reportedly provided the Army with false data which overstated the cost of manufacturing the antennas. That drove up the Army’s cost in purchasing the antennas since the Army’s cost to purchase was directly tied to First RF’s cost in making the antennas. The overbillings allegedly occurred in connection with the contractor’s 2005 contract with the Army.

While Waters & Kraus is not handling this particular case involving military contractor fraud, we are representing whistleblowers in similar lawsuits. If you have comparable claims against a different government contractor, email us or call our qui tam attorneys at 855.784.0268 to learn more about our practice and how we can work together to notify the government about fraud and abuse. Our qui tam lawyers, like Michael Armitage and Gary Paul in the firm’s California office, are committed to advancing and protecting informants’ interests in whistleblower lawsuits.