The Department of Justice recently announced that Axway, Inc. has agreed to pay $6.2 million to resolve a whistleblower lawsuit alleging that it had failed to properly disclose its pricing policies and practices.
As a participant in the Multiple Award Schedule Program (MAS), Axway, Inc. is required to disclose its pricing policies and practices to the General Services Administration (GSA). In exchange for this disclosure, Axway, Inc. is given the opportunity to gain access to the lucrative federal marketplace and sell to hundreds of government purchasers in one central MAS contract. GSA relies on accurate disclosures in negotiating prices for government purchasers.
The whistleblower in this case, a former employee of a company affiliated with Axway, Inc., revealed to the government that Axway, Inc. failed to disclose accurate pricing information to the government, which resulted in the government paying inflated prices for Axway, Inc.’s software products and related services.
As a reward for exposing to this fraud through the filing of a False Claims Act lawsuit, the whistleblower will receive $1,178,000 from the settlement proceeds.
For more information on this case, click here: http://www.justice.gov/usao/md/news/2013/AxwayInc.AgreesToPay6.2MillionToResolveFalseClaimsActAllegationsRelatedToGSAMultipleAw.html