COMPANIES

Contractors dish out $12M to settle alleged False Claim Act violations

Two companies – NetCracker Technology Corp. and Computer Sciences Corp. – have agreed to pay over $12 million to resolve accusations that they violated the False Claims Act.

The two companies implemented software that used to help manage the telecommunications network used by the Defense Department, FCW referenced a Justice Department statement as saying.

NetCracker allegedly used employees who lacked security clearances to perform work on a military system when it knew the contract required those individuals to have a clearance, which resulted in CSC submitting false claims for payment to DISA.

A whistleblower discovered that the companies used Russian computer programmers to write software for the U.S. military project, which put the Pentagon’s communications systems at risk of a cyberattack.

NetCracker is paying $11.4 million—CSC, $1.35 million—to settle the claims.

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