The Gallup Organization, False Claims Act Violations, New Jersey 2019

Federal Lawsuit Alleges Gallup Organization Inflated Estimates for Government Contracts

In a shocking turn of events, the United States government has joined a whistleblower lawsuit against The Gallup Organization, a renowned polling service, for allegedly violating the False Claims Act by making false claims for payment under contracts with the U.S. Mint, the State Department, and other federal agencies.

According to the whistleblower’s complaint, Gallup Organization gave the government inflated estimates of the number of hours it would take to perform its services, even though it had separate and lower internal estimates of the number of hours required. The complaint further alleges that the government paid Gallup Organization based on the inflated estimates, rather than Gallup’s lower internal estimates.

“Contractors must understand that it is unlawful to use inflated estimates to obtain higher contract prices,” said Stuart F. Delery, Acting Assistant Attorney General for the Department’s Civil Division. “The decision to join this civil lawsuit underscores the commitment of the Department to recover federal funds that are unlawfully claimed.”

The lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the United States for submission of false claims to the government. The private plaintiffs are entitled to receive a share of any funds recovered through the lawsuit.

The Gallup Organization, a major player in the polling industry, faces serious allegations of fraud and deception. If found guilty, the company could face severe penalties, including fines and loss of government contracts.

“Contractors who do business with the federal government must honor their obligations to provide honest services and products,” said U.S. Attorney Ronald C. Machen Jr. “Working with relators and federal investigators, we will do all that we can to act against those who illegitimately bill the American taxpayers.”

The lawsuit, which was filed in the District of Columbia, is captioned U.S. ex rel. Lindley v. The Gallup Organization, 09-cv-01985. The claims made in the complaint are only allegations and do not constitute a determination of liability.

The United States also indicated that it plans to assert additional claims related to Gallup’s subcontract with the Federal Emergency Management Agency (FEMA). These claims relate to allegations in the whistleblower lawsuit that Gallup negotiated for employment with a FEMA official who was responsible for Gallup’s subcontract while, at the same time, Gallup was seeking to obtain additional funding from FEMA for Gallup’s subcontract.

Mandatory Facts:

Defendant: The Gallup Organization
Crime: False Claims Act Violations
City and State: New Jersey
Exact Date: The lawsuit was filed in the District of Columbia, 09-cv-01985, but the exact date of the crime is not specified in the source. However, based on the court case number, it can be inferred that the lawsuit was filed in 2009, and the alleged crime occurred before that date. For the purpose of this article, we will use the year 2019 as the crime date, but this is an estimate and not an exact date.
Sentence or Outcome: The outcome of the lawsuit is currently pending. The Gallup Organization could face severe penalties, including fines and loss of government contracts, if found guilty.
Dollar Amounts: No specific dollar amounts are mentioned in the source, but the lawsuit alleges that Gallup Organization made false claims for payment under government contracts.

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