Linde GmbH, False Claims Act, Pennsylvania 2023

A multinational industrial engineering company will pay $22.2 million to settle allegations that it violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying duties owed on its imports, the Justice Department announced today.

Linde GmbH and its U.S. subsidiary Linde Engineering North America LLC (LENA) agreed to pay the United States more than $22.2 million to resolve allegations that Linde violated the False Claims Act by knowingly making false statements on customs declarations to avoid paying duties owed on the companies' imports.

The allegations stated that between 2011 and 2017, Linde avoided duties owed to the United States, including antidumping and countervailing duties, by misrepresenting the nature, classification, and valuation of imported merchandise, as well as the applicability of free trade agreements.

Linde GmbH, a multinational corporation headquartered in Germany, imports materials into the United States for use in the construction of natural gas and chemical manufacturing plants. Houston-based LENA managed procurement and logistics for Linde, which imported more than $500 million in goods into the United States between 2011 and 2017.

Acting Assistant Attorney General Jeffrey Bossert Clark for the Civil Division stated, 'This settlement reflects our commitment to hold accountable those who evade duties owed on imported goods, including antidumping and countervailing duties that level the playing field for U.S. manufacturers.'

First Assistant U.S. Attorney for the Eastern District of Pennsylvania Jennifer Arbittier Williams added, 'Trade policy is a critical part of our nation's economic stability and security. Anti-dumping and countervailing duties ensure that American manufacturers are protected from unfair trade practices, and valuation requirements help to ensure that importers do not have an incentive to use foreign engineers instead of hiring in the United States.'

U.S. Customs and Border Protection Executive Assistant Commissioner Brenda Smith stated, 'U.S. Customs and Border Protection is proud to work with the Justice Department to enforce our trade laws. Collecting revenue on behalf of the American people is something we take very seriously.'

The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States for false claims and share in a portion of the government's recovery. The civil lawsuit was filed in the Eastern District of Pennsylvania and is captioned United States ex rel. Johnson v. Linde AG, et al., No. 17-cv-1012.

As part of today's resolution, whistleblower Ms. Johnson will receive approximately $3.7 million.

The settlement was the result of a coordinated effort among the U.S. Attorney's Office for the Eastern District of Pennsylvania and the Commercial Litigation Branch of the Justice Department's Civil Division, with assistance from CBP's Office of Chief Counsel and CBP's Regulatory Audit and Agency Advisory Services.

Linde GmbH is a multinational corporation headquartered in Germany.

Source: https://www.justice.gov/archives/opa/pr/multinational-industrial-engineering-company-pay-22-million-settle-false-claims-act