Insitu, Inc. to Pay $25 Million Settlement with Department of Justice for Billing Fraud

On January 12, the Department of Justice announced that it had entered into a settlement with Washington-based Insitu, Inc. related to claims brought by a False Claims Act whistleblower.

D R O’Hara sued Insitu, Inc. under the False Claims Act, which allows whistleblowers to sue companies for false claims made to the government and to share in any recovery. The lawsuit alleged that from 2009 to 2017, Insitu submitted materially false costs and pricing data when it entered into seven contracts with the Department of the Navy and U.S. Special Operations Command (SOCOM) to supply and operate Unmanned Aerial Vehicles (UAVs). In addition, the suit alleged that Insitu perceptively inflated the prices as new parts and materials in the cost and pricing data section of their contract proposal while planning to use less expensive recycled, refurbished, reconditioned, and/or reconfigured parts to induce the government to award it these seven, noncompetitively bid contracts with the Navy and SOCOM.

“The Naval Criminal Investigative Service is dedicated to protecting the taxpayer’s interests and safeguarding critical services for the warfighter,” stated Charles P. King, Special Agent in Charge, NCIS Northwest Field Office. “The success of the Department of the Navy’s warfighting ability is dependent upon a sound, transparent and honest acquisition process. I want to thank the Department of Justice and our law enforcement partners for their incredible support and dedication during this investigation.”

The False Claims Act provides that whistleblowers receive between 10% to 30% of the money the government recovers from the wrongdoer. In this case, Ms. O’Hara was awarded approximately $4.6 million for stepping up and doing the right thing.

If You See Corporate Fraud, Talk to An Experienced Employment Attorney

Whistleblowers like Ms. O’Hara are critical to our system of law enforcement and to stop corporate fraud. Our experienced whistleblower attorneys can help you navigate False Claims Act cases and other complex whistleblower laws.

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