VMWare, Carahsoft to pay $75.5M to settle False Claims Act allegations
The Justice Department and the General Services Administration can add another False Claims Act settlement to its ever growing list.
Justice announced today VMWare and Carahsoft Technology agreed to pay $75.5 million to resolve allegations that it misrepresented their commercial pricing practices and overcharged the government on VMware software products and related services under the GSA schedule.
DoJ said Dane Smith, a former vice president of the Americas at VMWare, filed suit as a whistleblower. Smith alleged VMWare and Carahsoft made false statements to the government on the sale of VMWare products under Carahsoft’s multiple award schedule contract. Smith claimed these false statements allowed the companies to overcharge the government between 2007 and 2013.