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Torts
False Claims Act
Fraudulent Billing

United States of America, California, Florida, Hawaii, Illinois, Massachusetts, Nevada, Virginia, District of Columbia, and State and City of New York ex rel. Ann-Marie Shaw v. CA Technologies Inc.

Published: Dec. 21, 2013 | Result Date: Nov. 8, 2013 | Filing Date: Jan. 1, 1900 |

Case number: 1:06-cv-03552-LDW-WDW Settlement –  $11,013,800

Facts

Relator Ann Marie Shaw filed a suit on behalf of the United States government, and various states, against CA Inc., a Delaware corporation, that sold computer software and provided information technology management services to federal and state government agencies.

Contentions

PLAINTIFFS' CONTENTIONS:
Relator and the states claimed that they had claims under the False Claims Act against CA for improperly recording the beginning and end dates of software maintenance purchased by them and other governmental customers. This resulted in customers paying for periods of software maintenance for which they had already paid.

Relator and the U.S. federal government asserted similar claims on behalf of the U.S., and also argued that CA improperly steered U.S. Dept of Defense customers away from the Blanket Purchase Agreement, causing those customers to not take advantage of the benefits of the prepaid software inventory available under that agreement.

DEFENDANT'S CONTENTIONS:
CA Inc. proceeded to settle the case.

Result

The parties settled for varying amounts. CA agreed to pay $25,734.90 to Hawaii, $426,641.31 to Illinois, $204,639 to Massachusetts, $708,795.08 to New York, $227,583.37 to Virginia, $327,416.30 to Florida, and $35,346.74 to the District of Columbia. In separate settlement agreements, CA agreed to pay $73,794.06 to Nevada and $327,416.30 to Florida. CA also agreed to pay $983,807 to California. Finally, CA agreed to pay $58 million to the U.S. government. The U.S. and plaintiff states agreed to pay approximately $2 million to relator as her "relator's share" reward.


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