Gen Digital Inc., formerly known as Symantec Corp., has resolved a legal battle lasting over a decade by paying $55.1 million in a False Claims Act judgment. The payment includes $16.1 million in damages and $36.8 million in civil penalties, along with post-judgment interest and costs.
The judgment was announced by U.S. Attorney Matthew M. Graves for the District of Columbia, Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department’s Civil Division, and GSA Deputy Inspector General Robert C. Erickson.
A four-week bench trial held in February and March 2022 found Symantec liable for knowingly submitting false claims to the United States by misrepresenting its commercial sales practices during the negotiation and execution of a General Services Administration (GSA) contract. The court determined that Symantec provided false statements during negotiations in 2006 and early 2007, continuing to falsely certify through September 30, 2012, that its disclosures were current, accurate, and complete. These actions led GSA to accept higher prices than it would have had it been aware of Symantec's actual pricing practices.
Additionally, the court found Symantec violated the Price Reduction Clause of Multiple Award Schedule contracts by not maintaining GSA’s price position relative to an agreed customer or category during the contract's performance period. This violation resulted in depriving the United States of entitled discounts.
U.S. Attorney Graves stated, “The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government.” He emphasized their commitment to bringing fraudsters to justice regardless of complexity.
Principal Deputy Assistant Attorney General Boynton remarked on holding contractors accountable for overcharging: “The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves.”
GSA Deputy Inspector General Erickson highlighted fair pricing expectations from GSA contractors: “The United States deserves fair prices and accurate information from GSA contractors.”
This lawsuit was filed under the qui tam provision of the False Claims Act by Lori Morsell, who administered Symantec's contract at issue. Her share of the recovery remains undetermined.
Assistant U.S. Attorney Civil Chief Brian P. Hudak for D.C., along with Senior Trial Counsel Daniel Schiffer and Trial Attorney F. Elias Boujaoude from the Justice Department’s Civil Division, handled this case with support from various government offices.