Whistleblowers' Actions Lead to $1 Million Settlement in False Claims Case

Siemens Industry, Inc., a subsidiary of Siemens Corporation, has agreed to pay over $1 million to settle allegations of False Claims Act violations. The claims against Siemens were first brought forward by whistleblowers, who will receive a portion of the recovery.

The settlement resolves allegations related to a contract entered into in 2011 with the Hamtramck Housing Commission in Michigan. Under the contract, Siemens was to install energy efficiency improvements in public housing facilities. It is alleged that Siemens used inaccurate data in its analysis, resulting in higher subsidies paid by the government to the Housing Commission. 

In announcing the settlement, Inspector General Rae Oliver Davis from the U.S. Department of Housing and Urban Development (HUD) highlighted the significance of the False Claims Act in holding federal contractors accountable and safeguarding taxpayer dollars. 

The False Claims Act's qui tam provisions allow whistleblowers to file lawsuits on behalf of the government against individuals or entities that are defrauding government programs. If the government intervenes and successfully recovers funds through the qui tam lawsuit, the whistleblower may receive a percentage of the recovered amount as a reward, typically ranging from 15% to 30%. The claims against Siemens were made by two whistleblowers under the False Claims act’s qui tam provisions; They are set to receive $179,000 for their efforts.

It's important to note that the settlements entail allegations only, and there has been no determination of liability.

At the Kardell Law Group, we understand the critical role whistleblowers play in upholding integrity and accountability in government programs. If you have knowledge of fraudulent activity, whether it involves false claims for government funds or other misconduct, we urge you to step forward. Our experienced team provides legal representation to whistleblowers seeking to expose wrongdoing and protect taxpayer dollars. Don’t hesitate to contact us and schedule a confidential consultation to discuss your options. Together, we can make a difference.