Defense Contractor Pays $18M To End False Claims Act Suit

Law360, New York (June 1, 2012, 8:11 PM EDT) -- Intelligence analysis, information technology and language services company Calnet Inc. agreed to pay $18.1 million to settle a Virginia whistleblower suit accusing the company of submitting false claims to the U.S. Department of Defense, the U.S. Department of Justice announced Friday.

The settlement ends a False Claims Act suit launched by whistleblower and former Calnet employee Kimthy Chao, who accused the company of overstating its provisional indirect or overhead rates on three contracts through which the company provided translation and linguist services to the U.S. at...
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