FOR IMMEDIATE RELEASE
CIV
MONDAY, JANUARY 11, 1999
(202) 514-2007
WWW.USDOJ.GOV
TDD (202) 514-1888
INGERSOLL-RAND SUBSIDIARY PAYS $3 MILLION TO SETTLE WASHINGTON, D.C. - Clark Equipment Company, a subsidiary of Ingersoll-Rand
Corporation, will pay the government $3 million to settle claims that the company overcharged
federal agencies for earth-moving equipment, the Department of Justice announced today. According to Assistant Attorney General Frank Hunger of the Department of Justice Civil
Division and United States Attorney for North Dakota John Schneider, today's civil settlement
resolves charges brought against the Ingersoll-Rand Corporation and its subsidiary Clark
Equipment Company doing business as the Melroe Company. Clark's headquarters is in Fargo. The charges were originally filed on June 26, 1997, by a former employee of Clark,
Steven Falck, under the qui tam provisions of the civil False Claims Act in U.S. District Court in
Alexandria, Va. That complaint alleged that the company failed to provide accurate pricing
information to GSA contract negotiators on two contracts for the purchase of "Bobcat" brand
earth-moving equipment, and that as a result, federal agencies purchasing the equipment were
overcharged. After investigating the allegations in the whistleblower's complaint, the United States
intervened in the case and asserted claims against Clark Equipment and Ingersoll-Rand under the
False Claims Act. The case was subsequently transferred to the U.S. District Court in Fargo. Under the settlement, Falck will receive $510,000 for bringing the matter to the attention
of the government. Under the qui tam amendments of the False Claims Act, a private party can
file an action on behalf of the United States and receive a portion of the recovery. The GSA Office of Inspector General (OIG) investigated the case. The Department of
Justice Civil Division and U.S. Attorney John Schneider negotiated the settlement. Ingersoll-Rand, a manufacturer of industrial supplies, is headquartered in Woodcliff, N.J. 99-007
ALLEGATIONS OF OVERCHARGING GOVERNMENT