Panalpina Settles Qui Tam Claim Related to Iraq Contracting

On August 3, 2010, Panalpina Inc., one of the world’s leading forwarding and logistics services, agreed to settle a False Claims Act suit filed several years ago by a whistleblower on behalf of the U.S. government.  The suit alleged that a former Panalpina employee provided unlawful entertainment to employees of Kellogg, Brown & Root and the U.S. government’s Logistics Civil Augmentation Programs.  The majority of the alleged expenses involved greens fees for golf, food, and beverages.

Under the terms of the settlement, Panalpina will pay $375,000 to the U.S. government, a figure substantially smaller than that previously paid by Panalpina’s co-defendants.  The relatively low settlement amount reflects Panalpina’s extensive cooperation and the fact that the alleged activities involved a former employee who acted without the knowledge, approval or involvement of the company’s current management team.

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