Judgment of $55 Million in Qui Tam Case Where Government Was Overcharged

As part of the government contracting process, vendors must state that they are providing accurate information regarding their commercial sales practices. This is meant to stop companies from charging the government more than they do their private customers. Some contractors don’t pay by the rules though, and it often takes someone with detailed knowledge of a company’s operations to alert the government that fraud is occurring.

At Gen Digital Inc., formerly known as Symantec Corp., Lori Morsell was responsible for administering the company’s software contract with the federal General Services Administration (GSA). During the course of her work, she noticed that her employer had misrepresented its commercial sales practices during its 2006–2007 negotiations with the GSA. The allegations extended through the performance of the contract, which lasted until September 30, 2012.

Morsell brought a qui tam lawsuit under the False Claims Act (FCA), serving as the relator to recover the amount that Gen Digital had overcharged the GSA. After a decade-long legal battle, the company paid $55.1 million to satisfy a judgment stemming from the FCA case. In qui tam cases such as this one, the relator is typically entitled to receive between 15 and 30 percent of the amount recovered by the government. Here, that means Morsell could wind up with a payment in the range between $7 million and $17 million. The court has not yet provided an exact figure. 

Misrepresenting commercial pricing practices can lead to severe legal and financial consequences under the FCA. Companies must ensure compliance with contractual disclosure requirements to avoid similar pitfalls. As seen from this case, honest employees such as Morsell can reap substantial rewards by blowing the whistle on high-stakes misconduct. 

The FCA remains a critical tool for holding companies accountable for defrauding the government. By imposing treble damages and significant penalties, it ensures that misconduct does not go unpunished and that taxpayers are protected from financial harm. Companies engaging with federal agencies must prioritize transparency and compliance to maintain integrity and avoid costly legal consequences. Here, the overcharged amount was slightly more than $16 million. However, Gen Digital ended up paying nearly $40 million more than that due to civil penalties, interest and court costs. 

Don’t remain silent if you see that your current of former employer is deceiving the government in order to pad their profit margin. At Kardell Law Group, we are committed to helping scrupulous individuals root out fraud and collect a share of the financial recovery as compensation for their diligence.