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Informatica to Pay Nearly $22 Million to Settle Allegations of FCA Violations

Informatica, a provider of cloud and data services, recently agreed to pay a $21.57 million settlement in a case that alleged the company overcharged the government by providing false or misleading information on its sales practices.

According to information released by the U.S. Department of Justice, the company allegedly knowingly provided this false information on its discounting practices for its products and services to other resellers, who would then use that false information to negotiate with the General Services Administration for government contracts. With those contracts, GSA uses commercial pricing disclosures to better negotiate the maximum prices vendors can charge to government agencies. But with the information provided by Informatica being false, GSA negotiated less favorable pricing, resulting in government buyers being overcharged for the services.

The evidence that made the settlement possible came from a whistleblower lawsuit filed under the False Claims Act. The whistleblower was a former employee of Informatica, and will receive approximately $4.3 million of the settlement money for his or her contribution to the case.

Whistleblowers can win big in FCA cases

This case is just one more example of how whistleblowers stand to recover some significant compensation if they assist the government in False Claims Act cases. Whistleblowers with knowledge of wrongdoing can file a claim under the Act, and the justice department can then take up the case if it believes the information to be of merit and worth pursuing.

Whistleblowers who file such cases are also subject to all of the various protections afforded to whistleblowers under federal law, including those that guard whistleblowers against potential retaliation.

To learn more about the steps you should take as a whistleblower to file an FCA suit, consult a knowledgeable whistleblower lawyer with Kardell Law Group.

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