Tech Co. Wins $11.4M For False Claims It Dodged Payroll Tax

Law360, Houston (March 13, 2014, 8:40 PM EDT) -- A Texas jury awarded $11.4 million to an information technology consulting company that lost a contract with BG Group PLC after a competitor allegedly made false reports to state and federal authorities that the company was illegally dodging employment taxes.

In rendering its verdict in favor of Houston-based Function One Consulting Group LLC, the jury found that Accudata Systems Inc. attempted to provoke the Internal Revenue Service, Federal Bureau of Investigation and the Texas Workforce Commission to launch investigations based on inaccurate claims that Function One misclassified its employees as independent contractors to avoid paying taxes.

And the jury found that...

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