Although the majority of False Claims Act cases involve the healthcare industry, it is important to remember that the FCA is industry-agnostic; if you are doing business with the government, you are subject to its prohibitions. A Minnesota-based asphalt contractor learned that lesson the hard way and agreed to pay $1.3 million to settle an FCA matter alleging that it falsified quality test results.
On April 4, 2025, the DOJ and Minnesota Attorney General’s Office announced that Anderson Brothers Construction Company settled allegations that it violated the FCA by “routinely and knowingly falsified test results to make its paving material appear to be higher quality than it was and submitting those falsified results to the government in seeking payments for road paving in Minnesota.”
Specifically, the government alleged that, as a condition of payment for federally-funded road paving contracts, the defendant was required to perform certain quality tests of its paving material and submit those test results to the government. According to the DOJ’s press release, Anderson Brothers falsified the results and submitted them in order to receive financial incentives for superior quality paving material and avoid deductions for lower-quality material.
The FCA case was brought under the FCA’s qui tam (whistleblower) provisions by a former company employee, who will receive between 15 and 30% of the government’s total recovery.
This case serves as an important reminder that any company doing business with the government must take steps to ensure the accuracy of any statement or claim submitted to the government.
The attorneys at Chilivis Grubman represent businesses of all types and sizes in connection with FCA investigations and litigation. If you need assistance with such a matter, please contact us.