Agave BioSystems Settles FCA Claims Over Contract Staffing

By Eric Hornbeck (August 19, 2013, 11:54 AM EDT) -- A New York federal judge approved a settlement Friday over a whistleblower's allegations that Agave BioSystems Inc. defrauded the U.S. Department of Defense out of more than $15 million by staffing contracts with its founder's family members instead of engineers.

U.S. District Judge Norman A. Mordue approved a stipulation of dismissal in light of the settlement, which was reached on May 22 and calls for Agave and other defendants to pay $300,000.

Matt Salazar, Agave's president, told Law360 on Monday that it was cheaper to settle the matter than to fight it, especially now that his father, Agave founder Noe A....

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