FOR IMMEDIATE RELEASE |
THURSDAY, JUNE 30, 2005
TDD (202) 514-1888
HUMANSCALE CORPORATION TO PAY UNITED STATES $9 MILLION
TO SETTLE ALLEGATIONS OF OVERCHARGING GOVERNMENT
WASHINGTON, D.C. - Humanscale Corporation (formerly Softview Computer Products), a company that provides furniture and office products to the federal government, has agreed to pay the United States $9 million to resolve allegations that the company overcharged the government, the Justice Department announced today. The government alleged that the New York firm failed to disclose current, accurate and complete discount and pricing information to the General Services Administration (GSA) contract negotiators and failed to comply with the price reduction clauses for three of its GSA Multiple Award Schedule contracts resulting in the overcharging of the government.
“The settlement today with Humanscale shows the Department's determination to sue and collect damages under the False Claims Act when it’s determined that government contractors knowingly or recklessly overcharge the government,” said Peter D. Keisler, Assistant Attorney General for the Civil Division.
The settlement, which covers overcharges that occurred between April 1, 1998 and December 31, 2004, also resolves charges originally brought against Humanscale Corporation by a former employee, Gerald Rademacher. The government took over prosecution of the case in 2005.
Under the settlement, Mr. Rademacher will receive $1,575,000 for bringing the matter to the attention of the government. Under the qui tam or whistleblower provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of the settlement if the government takes over the case and prosecutes it successfully.
The civil investigation and settlement were jointly handled by the Office of the United States Attorney for the District of Columbia and the Civil Division of the Justice Department. The action is entitled United States ex rel. Rademacher v. Softview Computer Products, CIV 02-1493R (D.D.C.).