On May 22, 2025, the Department of Justice announced that Utah-based defense contractor L3 Technologies had agreed to pay $62 million to resolve allegations that one of its subsidiaries violated the False Claims Act (FCA), as well as the Truth in Negotiations Act, by knowingly making false statements and submitting false claims by failing to disclose “accurate, current, and complete cost or pricing data” for communications equipment sold to various federal agencies.
According to the DOJ’s press release, the government — mainly the Department of Defense — purchased various communication products from L3 through “sole source, fixed price contracts.” The government alleges that L3 failed to disclose “accurate, complete, and current cost or data” relating to labor, material, and other costs associated with manufacturing the products at issue, and then falsely certified that it had done so in various government contract proposals. In so doing, the government alleged that L3 violated both the FCA and the Truth in Negotiations Act, which requires contractors to provide such accurate information to the government at the time it enters into a contract.
Although the majority of FCA activity is in the healthcare space, as this settlement demonstrates, anyone doing business with the federal government faces FCA liability if they provide false or misleading information to the government, or simply fail to provide accurate information despite promising to do so.
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The attorneys at Chilivis Grubman represent businesses and individuals in connection with False Claims Act investigations and litigation. If you need assistance with such a matter please contact us.