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CSC agree to a $12 million settlement with the US Department of Defense

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November 3, 2015

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It is reported today that Computer Sciences Corporation (CSC) and its subcontractor NetCracker Technology have agreed to a $12 million settlement following allegations the two firms used individuals without security clearances on a US Department of Defense IT contract.

NetCracker, a telecommunications software and services company, has agreed to pay a hefty $11.4 million, while CSC will part with $1.35 million to resolve the alleged breach of contract without determining liability.

Those allegations were made under the False Claims Act and they state that the companies had used IT workers without the proper security clearances on a Defense Information Systems Agency (DISA) contract, the U.S. Justice Department said today.

NetCracker, subcontracted by CSC, was responsible for implementing software used to help manage the Department of Defense (DoD) telecommunications network. This work was done under a contract with the Defense Information Systems Agency (DISA), a combat support agency of the DoD which handles some of its IT operations.

The Department of Justice press release stated-- ``From 2008 through 2013, NetCracker allegedly used employees without security clearances to perform work when it knew the contract required those individuals to have the necessary security clearances, resulting in CSC recklessly submitting false claims for payment to DISA.``

The False Claims Act is notable for including a so-called 'Qui Tam' provision, which allows for whistleblowers to file a suit on behalf of the US government when alleging that their employers have committed fraud.

In doing so, the whistleblowers are able to obtain a portion of the government's recovery money.

The civil lawsuit in this case was filed in the District of Columbia by John Kingsley, who is a former NetCracker employee. Kingsley is due to receive $2.35 million as his share of the recovery process in this case.

The claims resolved by this settlement are allegations only, and there has been no determination of liability for now.

Source: The U.S. Department of Defense.

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