October 26, 2015
In 1920, U. S. Supreme Court Justice Oliver Wendell Holmes wrote that contractors “must turn square corners when they deal with the Government.” That remains true today, and allegations in a recently-settled False Claims Act case illustrate the point.

The allegations were made in United States ex rel. Webb v. The Boeing Co. in the U.S. District Court for the Central District of California. A former Boeing employee filed a whistleblower FCA suit – a qui tam suit – alleging that a Boeing facility in Long Beach, CA billed the Government for eight-hour days between 2006-2013, when Boeing allegedly knew that the employees worked less than eight hours as a result of taking lunch and other breaks. Boeing decided to settle the suit by making an $18 million payment, about $3 million of which reportedly went to the whistleblower.

For more information on takeaways from this settlement and how contractors can mitigate their FCA exposure risk, please click here.