Gen Digital Inc., previously known as Symantec Corp., has paid $55.1 million to resolve a False Claims Act judgment, marking the end of a lengthy legal battle over alleged overcharges to the General Services Administration (GSA). The settlement includes $16.1 million in damages and $36.8 million in civil penalties, along with additional costs.
"The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves," stated Brian M. Boynton, Principal Deputy Assistant Attorney General of the Justice Department’s Civil Division. He emphasized the department's commitment to safeguarding taxpayer funds through persistent litigation efforts.
A four-week bench trial held in early 2022 concluded with a court ruling against Symantec for knowingly submitting false claims regarding its commercial sales practices during GSA contract negotiations and performance from 2006 to September 2012. The court determined that these misrepresentations led GSA to accept inflated prices based on inaccurate disclosures.
Additionally, Symantec was found guilty of breaching the Price Reduction Clause within their Multiple Award Schedule contracts, resulting in lost discounts for the United States government.
U.S. Attorney Matthew M. Graves for the District of Columbia commented on the judgment: "The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government." He reiterated his office's dedication to pursuing justice against fraudulent activities affecting taxpayer dollars.
Robert C. Erickson, GSA Deputy Inspector General, remarked on the case outcome: "This outcome is the result of hard work and dedication by a cross-functional team from the U.S. Department of Justice, GSA and GSA Office of Inspector General."
The lawsuit was initiated under the False Claims Act's qui tam provision by Lori Morsell, who managed Symantec’s contract involved in this case. The U.S., having intervened in this suit titled United States ex rel. Morsell v. Symantec Corp., Civ. A. No. 12-0800 (DDC), took charge of litigating it.
Senior Trial Counsel Daniel Schiffer and Trial Attorney F. Elias Boujaoude from the Justice Department’s Civil Division, along with Civil Chief Brian P. Hudak for D.C., played significant roles in handling this matter with support from various governmental offices.
