Information Technology Outsourcing Firm Accenture Pays $68.68 million to Settle Federal Whistle-blower Lawsuit, Denies Wrongdoing

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Information technology outsourcing firm Accenture has agreed with the U.S. Department of Justice to pay $63.68 million settling a federal whistle-blower that alleged the firm committed fraud in billing for it contracts with the U.S. government, the U.S. Department of Justice announced today, 12 Sept. 2011.

accenture logoThe lawsuit, (United States ex rel. Norman Rille and Neal Roberts v. Accenture LLP) was filed in 2006 in federal court in Little Rock, Arkansas, alleged Accenture submitted, or caused to be submitted, false claims for payment under numerous contracts with federal agencies for information technology services. The the Justice Department intervened in the case in 2009.

“Accenture has agreed to resolve allegations that it received kickbacks for its recommendations of hardware and software to the government, fraudulently inflated prices and rigged bids in connection with federal information technology contracts,” the Justice Department said 12 Sept. 2011 in a written statement.

Accenture denies any wrongdoing but settled the case to “avoid additional time, inconvenience and expense that would come with protracted litigation.” The settlement will not affect Accenture’s work with the US federal government, according to a statement from Accenture.

The Department of Justice said the lawsuit was filed initially by Norman Rille and Neal Roberts under whistle-blower provisions of the False Claims Act. the The False Claims Act allows private individuals to bring a lawsuit on behalf of the United States and receive a portion of the proceeds of a settlement or judgment awarded against a defendant.

The portion of the proceeds to be paid to the whistle-blowers in this case has not yet been resolved, according to the Justice Department.

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