CA Inc. has been accused of violating the False Claims Act in connection with a General Services Administration (GSA) contract, according to a complaint filed by the government.
The complaint alleges that CA Inc., a leading information technology company headquartered in Islandia, New York, knowingly overcharged the government for software licenses and maintenance since at least 2006.
According to the complaint, CA Inc. provided incomplete and inaccurate information to GSA contracting officers during the negotiation of contract extensions, and failed to truthfully update its discounting practices during the life of the GSA contract.
The contract, a Multiple Award Schedule (MAS) contract, was entered into in September 2002 and requires CA Inc. to provide software licenses, software maintenance, training and consulting services to various government agencies.
The complaint also alleges that CA Inc. failed to apply properly the contract’s price reduction clause, resulting in the government overpaying for CA’s information technology.
CA Inc.’s contract is used by agencies such as the Department of Defense, the Department of Energy, the Department of Health and Human Services and the Department of Labor.
The government’s complaint was filed by Assistant Attorney General Stuart F. Delery, and is being prosecuted by U.S. Attorney Ronald C. Machen Jr.
The case was originally brought by a former CA Israel Ltd. employee, Dani Shemesh, under the qui tam provisions of the False Claims Act, which permits private parties to sue on behalf of the government and to share in any recovery.
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Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release ↗
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