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Another GSA Schedule Antikickback/FCA Settlement


The Justice Department announced on May 25, 2010, a settlement with EMC for $87.5 million related to allegations that the company had fraudulently induced GSA to enter into a Schedule contract by misrepresenting the company's commercial pricing practices and that the company had engaged in an illegal kickback scheme whereby it paid consulting companies fees each time those companies recommended that government agencies purchase an EMC product. As discussed more in depth in our blog, this settlement, which contains some unique terms, is one of several to come out of the group of False Claims Act cases filed by two relators in 2004 against IT companies alleging that "referral fees," "influencer fees," and similar arrangements with system integrators and "alliance partners" violated the Anti-Kickback Act and resulted in false claims.

For more information, please contact the professional(s) listed below, or your regular Crowell & Moring contact.

Marc F. Efron
Retired Partner – Washington, D.C.

Crowell & Moring LLP is an international law firm with offices in the United States, Europe, MENA, and Asia that represents clients in litigation and arbitration, regulatory and policy, and transactional and corporate matters. The firm is internationally recognized for its representation of Fortune 500 companies in high-stakes litigation and government-facing matters, as well as its ongoing commitment to pro bono service and diversity, equity, and inclusion.

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