Ashcraft & Gerel LLP The Victims' Rights Law Firm Washington, D.C. Maryland (Baltimore Landover Rockville) Virginia

ASHCRAFT & GEREL ANNOUNCES THE LARGEST-EVER GSA WHISTLE BLOWER SETTLEMENT

PRESS RELEASE

ASHCRAFT & GEREL ANNOUNCES THE LARGEST-
EVER GSA WHISTLE BLOWER SETTLEMENT

Washington, DC (March , 2009) The Department of Justice (DOJ) has today announced a $128 million fraud and abuse case settlement against McLean, VA.-based company, Network Appliance, Inc. This is the largest corporate fraud settlement associated with the Government Services Administration (GSA) Federal Supply Service procurement program to date. Ashcraft & Gerel (Washington, DC) filed this action under the False Claims Act, on behalf of their client, Igor Kapuscinski, the whistle blower who uncovered and reported the fraudulent conduct. Under the False Claims Act, a whistle blower can file a fraud complaint on behalf of the United States Government and then share in the recovery. In this action, Mr. Kapuscinski will receive a 15% share or $19.2 million.

Under long-standing GSA contract guidelines, companies that contract with the GSA are obliged to provide the Government with favorable pricing for the items they sell to the Government. This is commonly referred to as the Best Price. Prior to the award of the contract, and during the course of the contract, these vendors must provide the Government with complete and accurate information about the discounts that they offer to non-government commercial customers. This information allows the Government to negotiate its best price, and protect its most favored customer status. According to settlement papers released today, Network Appliance, Inc., which was in a contract with the GSA beginning in February 1996, did not give the Government accurate and complete data about the discounts offered to commercial customers, nor did it afford the Government an opportunity to achieve its most favored customer status. The contract was for individually priced technology products manufactured by Network Appliance, Inc. to be sold to eligible federal agencies. 

Ashcraft & Gerel was contacted by the relator, Igor Kapuscinski, the Federal Systems Operations Manager. He came forward as the whistle-blower in this lawsuit and revealed the fraudulent conduct. The Ashcraft & Gerel attorney handling the case commented, “Mr. Kapuscinski is an amazingly courageous man; he saw a company program out of sync with designated federal guidelines and decided to make it right.” 

After cases are filed under the False Claims Act, the Government investigates the allegations, while the matter remains under seal for an extended period. According to Ashcraft & Gerel, both the DOJ and GSA did an outstanding job following the leads provided by Mr. Kapuscinski to make this recovery. Ashcraft & Gerel thanked "DOJ attorneys Sara McLean and Laurie Weinstein for their hard work in helping to bring this case to justice.”

Ashcraft & Gerel has represented federal whistle blowers (Qui Tam) in cases that have led to the recovery of many millions of dollars from federal contractors who were overcharging, cheating, defrauding or otherwise obtaining federal funds by wrongful conduct. Recognized as a top victim’s rights law firm, Ashcraft & Gerel lawyers help injured people recover losses and damages resulting from malpractice, negligence, unsafe products, dangerous drugs, and work injuries giving rise to workers' compensation claims.