Gallup Pays $10.5m to Settle Overbilling Claims

Gallup has agreed to pay $10.5m to settle charges that it overbilled the US Mint and State Department by overstating billable hours. Former Gallup exec turned whistle-blower Michael Lindley is to receive $1.9m for his part in the case.

Last August, the US federal government joined the lawsuit filed by Lindley (pictured), in which he claimed that the company had inflated exec labor time and quotes for several government departments.

Lindley filed the suit under the False Claims Act, alleging that the company inflated the number of work hours estimated in contracts well beyond what it considered necessary. According to his suit, as the contracts in question were not put out to competitive tender, the government had no means of comparing Gallup's figures, and this led to more than $10m in overpayments being made.

Lindley, who claims he was fired in 2009 after warning his bosses that he would go to the Justice Department if the company did not stop the practice of overbilling, is to receive a $1.9m pay-off. In a statement, he said: 'I'm sure there are other people out there who are in the same position as I was four years ago. People who want to come forward and do the right thing but who are afraid to risk their careers and reputations. Whistle-blowers should know that they are not alone. Today's settlement proves that the process can work.'

The suit also claimed that Gallup improperly engaged in employment negotiations with former Federal Emergency Management Agency (FEMA) official Tim Cannon, in order to obtain a $6m FEMA subcontract at an inflated price. Cannon has agreed to pay a $40k fine and to plead guilty to misconduct in return for being placed on probation.

Under the terms of the settlement, Gallup has not admitted any wrongdoing.

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.