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False Claims Act Settlement

We are pleased to report another settlement of a federal false claims lawsuit, United States ex rel Jeffrey W. Adler vs. General Electric Aviation Services LLC. As reported in the LA Daily Journal,  this case involved multiple attorneys representing the United States and the ex rel whistle blower J.W. Adler. Mr. Adler filed suit against his employer, General Electric Aviation Services, LLC, alleging that the company submitted false claims relative to several Department of Defense contracts. Basically, the qui tam relator alleged that GEAS was well aware that its fuel tanks did not comply with agreed-upon contractual terms and did not properly perform quality control in regard to these tanks.The governmental agency responsible for prosecuting all civil false claim cases is the US Department of Justice. Often times, this agency works in close contact with the US Department of Defense.

Specifically, the 2007 agreement with the US Navy and GEAS stipulated that the fuel tanks would meet certain test standards. In fact, in march 2008 these tanks failed government tests, which led to a multi-agency investigation.

Defendants paid $6,580,000 in settlement. While the amount received by the whistle blower and his attorney is not for publication, the general rule is that a whistle blower will receive approximately 15-20% of any sums recovered by the government. This amount can go as high as 25-30% if the government declines intervention and the whistle blower is allowed to proceed on his own.

Under the qui tam act, 31 USC 3729, et seq, current statutory penalties include a minimum fine of $5,500 per violation, up to $11,000, attorney fees and penalties of 3 times the amount of actual losses.

Our firm has represented qui tam plaintiffs both with and without the government’s intervention. In many cases, we insist on including a cause of action seeking to make whole our client for the retaliation which many times follows a whistle blowing complaint. This allows us to seek court orders unsealing the complaint, serving the defendant, and, conducting our own discovery (as opposed to the government’s) on the personal employment-related issues.

Your first call on discovering fraud in billing or providing of services or products to a governmental agency should be to a knowledgeable whistle blower’s law firm. The consequences of not proceeding correctly in the initial stages of notifying the government may cost you the entire lawsuit!. Our state-wide employee-only law firm would be pleased to discuss your case with you. If we are not the firm for you, we’ll try and find one that fits your case well. We represent California employees in all aspects of wrongful termination and whistle blowing and have recovered more than 100,000,000 for our clients and the government.