SAIC Spinoff Co. Pays $1.5M To End Long-Running FCA Case

Law360, New York (October 21, 2014, 6:10 PM EDT) -- Leidos Holdings Inc. on Monday agreed to pay $1.5 million to settle a 10-year-old False Claims Act case over conflicts of interest in its work for the U.S. Nuclear Regulatory Commission, ending a case that contributed to its spinoff from Science Applications International Corp. in 2012.

SAIC was accused of violating the False Claims Act under two consulting contracts with the NRC, after government officials discovered that SAIC had contracts with other companies in the nuclear industry. Such organizational conflicts of interest were forbidden under the terms of its government contract, and its failure to alert the government meant that every...

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