Booz Allen Hamilton Holding Corporation Pays Over $377 Million To Settle Whistleblower Fraud Allegations

WASHINGTON, July 21, 2023 /PRNewswire/ -- The U.S. Department of Justice (DOJ) has entered into a settlement with Booz Allen Hamilton Holding Corporation (Booz Allen) to resolve a lawsuit that began seven years ago with the filing of a whistleblower complaint by a former employee.  The whistleblower, Sarah Feinberg, alleged that Booz Allen had been overcharging the federal government by knowingly presenting false claims for reimbursement.

Booz Allen agreed to pay the government $377,453,150 to settle the claims, originally filed by the whistleblower under the qui tam provisions of the False Claims Act.  Under that law, a private citizen with knowledge of fraud against a government agency or government program can "blow the whistle" by bringing a lawsuit on behalf of the government.  Successful qui tam whistleblowers can receive substantial awards.  In this case, the government awarded the whistleblower nearly $70 million.  William Pittard, Matthew Kaiser, Justin Dillon, and Jonathan Jeffress from KaiserDillon PLLC, based in Washington, D.C., and Jonathan Tycko, Tycko & Zavareei LLP, also based in Washington, D.C., represented Ms. Feinberg.

Ms. Feinberg had this to say:  "I hope this case will inspire more whistleblowers to hold corrupt individuals and corporations accountable."  She added:  "And I am grateful for the heroic work done by the KaiserDillon team and Jonathan Tycko over the past 7 years to help expose Booz's conduct and assist the government in recovering some of the funds that were claimed by Booz."

"We are proud to have represented Sarah Feinberg in this matter.  Through her courage and determination to do the right thing, as well as the government's efforts, we have achieved at least a measure of justice," said William Pittard, one of Ms. Feinberg's lawyers.  "Using the qui tam provisions of that law, Ms. Feinberg was able to bring this matter to the attention of the government in a way that led to a significant monetary recovery.  We are proud and humbled to represent her in this case."

"We are grateful for how seriously the U.S. Attorney's Office, the Department of Justice's Civil Fraud Section, and all the government lawyers and investigators who have worked on this matter, took the allegations, and for the work they did to reach this settlement," added attorney Jonathan Tycko, who also represented Ms. Feinberg.

The False Claims Act

The False Claims Act, sometimes referred to as "Lincoln's Law," was initially enacted during the Civil War in response to "profiteering" by companies that sold defective or useless goods to the Union Army.  The Act has been amended several times since then.  The modern version of the False Claims Act makes it unlawful for a company to submit false claims for payment to the government, or to create false documents or other records to obtain such payment.  The False Claims Act also has a so-called "qui tam" provision that permits private whistleblowers to bring a lawsuit in the name of the government against companies or individuals who violate the Act.  Under that qui tam provision, a whistleblower award is typically between 15% and 30% of whatever amount is recovered by or for the government as a result of the lawsuit.

Qui tam complaints are filed "under seal" and are then investigated by the Department of Justice, which can then intervene in the lawsuit on the side of the whistleblower.  Here, Ms. Feinberg filed the qui tam complaint in 2016 in the United States District Court for the District of Columbia.  The case was investigated by the U.S. Attorney's Office for that District, along with investigators from the Department of Defense and the Defense Contract Management Agency.

The qui tam lawsuit at issue is Civil Action No. 16-1911 (ACR) in the United States District Court for the District of Columbia.

About KaiserDillon PLLC

KaiserDillon PLLC represents individuals and companies in the most challenging moments of their lives.  The firm's offices are in Washington, D.C.

About Tycko & Zavareei LLP

Tycko & Zavareei LLP represents whistleblowers, consumers, employees, and others who seek to remedy corporate fraud and other wrongdoing.  The firm has offices in Washington, D.C. and California, and represents clients in litigation in federal and state courts around the country.  Jonathan Tycko is a Partner in the firm's whistleblower practice, who has represented dozens of whistleblowers in cases under the False Claims Act and similar statutes; those cases have returned hundreds-of-millions of dollars to federal and state governments.

SOURCE KaiserDillon PLLC