Court Grants $40 Million Judgment For Qui Tam Plaintiffs

On August 13, 2012, a U. S. District Court in Dallas, Texas entered a final judgment in the amount $40,472,759 for Qui Tam plaintiffs against a defendant for violations of the False Claims Act.  The violations stemmed from fraudulently inflated charges that were submitted by a government subcontractor to Lockheed Martin Corporation and then passed on to the United States government.  The judgment was entered against the former President and CEO of the subcontractor, who had previously pleaded guilty to conspiracy to defraud the government and been sentenced to a prison term of 7 ½ years.  The amount of the judgment represented the government’s actual damages multiplied by three consistent with the treble damages provision of the False Claims Act.

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