Construction Co. Settles DOT Workers' Comp False Claims Suit

Law360, New York (February 8, 2013, 3:22 PM EST) -- California-based Granite Construction Co. will pay $367,500 to settle allegations it padded its workers' compensation insurance rates to get more money from the government for U.S. Department of Transportation and Army Corps of Engineers projects, federal prosecutors said Friday.

The construction company had sought price increases from the government through change orders and equitable adjustment requests based on its workers' compensation and general liability insurance rates, according to prosecutors. But those rates were inflated with additional "cushions" that the company never actually paid — thus improperly...
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