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Anderson Brothers agrees to $1.3 million settlement for false test result allegations

LEGAL NEWSLINE

Tuesday, April 8, 2025

Anderson Brothers agrees to $1.3 million settlement for false test result allegations

State AG
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Attorney General Keith Ellison | Facebook Website

A construction and paving company, Anderson Brothers Construction Company of Brainerd LLC, will pay $1.3 million to address allegations of violating both federal and Minnesota False Claims Acts. The resolution seeks to settle accusations of the company falsifying test results on paving material quality from 2017 to 2022, as announced by the Minnesota Attorney General Keith Ellison.

These allegations became known through a whistleblower, Kacie Dixon, a former technician at Anderson Brothers, who initiated a qui tam case. This case, "United States of America and State of Minnesota ex rel. Dixon v. Anderson Brothers Construction Company of Brainerd, LLC.," granted Dixon a share of the financial recovery resulting from her lawsuit.

Federal and state authorities argued that Anderson Brothers consistently falsified quality assessments required for state and federal paving projects to boost payments they received for these contracts. Instead of presenting authentic test results, Anderson Brothers submitted fabricated data, misleading the government financially.

Due to this false reporting, Anderson Brothers allegedly received more compensation than it would have with accurate results. Of the settlement sum, $660,761 will go to the United States and $634,849 to the State of Minnesota. Additionally, the contractors have agreed to measures prohibiting future test manipulation. They will introduce an employee training program and establish a corporate compliance structure and code of ethics, under the monitoring of the Minnesota Department of Transportation.

“Minnesotans expect their hard-earned tax dollars to go to things like roads, bridges, schools, and public safety, not into the pockets of corrupt contractors,” Attorney General Ellison stated. “My thanks go out to whistleblowers like Kacie Dixon who help us fight fraud and protect our public resources. Let this serve as yet another warning that I will not hesitate to civilly prosecute those who cheat the taxpayers of Minnesota.”

The resolution resulted from joint efforts between the Minnesota Attorney General’s Office, the Minnesota Department of Transportation, and federal entities, including the Justice Department and the U.S. Attorney’s Office for the District of Minnesota, with support from the Office of Inspector General for the U.S. Department of Transportation.

Individuals concerned about the misuse of government funding are encouraged to file complaints with the Attorney General’s Office through their online complaint form or by phone.

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