MAY 29, 2018 — Inchcape Shipping Services Holdings Limited and certain of its subsidiaries have agreed to pay $20,000,000 to resolve allegations that they violated the False Claims Act by knowingly overbilling the U.S. Navy under contracts for ship husbanding services, the Department of Justice announced today.
The lawsuit was brought under the qui tam, or whistleblower, provisions of the False Claims Act by three former employees of Inchcape. Under the act, a private citizen may bring suit on behalf of the United States for false claims and share in any recovery. The government may intervene in the case, as it did here. The False Claims Act allows the government to recover treble damages and penalties from those who violate it. As part of today’s resolution, the whistleblowers will receive approximately $4.4 million, 22% of the settlement proceeds.
Inchcape, one of the world’s largest providers of marine support services, is headquartered in the United Kingdom and is a subsidiary of the Istithmar World investment firm and the Dubai government-owned Dubai World.Read more here.