New York-based Corning, Inc. has agreed to settle claims that it violated the False Claims Act for $5.65 Million. Corning’s Life Sciences Division produces glass and ceramic components for consumer electronics, mobile emissions controls, and telecommunications.
According to the Justice Department, in 2005, Corning entered into a contract to sell laboratory research products to federal government agencies. As a part of the contract, Corning agreed to disclose its commercial pricing policies and practices and abide by the terms of the contract.
In a whistleblower lawsuit filed under the qui tam provisions of the False Claims Act, Kevin Jones, a former Corning sales representative, alleged that Corning knowingly failed to provide accurate and complete information concerning its pricing and sales practices, including, the discounts it offered to its other commercial customers. The government alleged that Corning failed to pass the discounts on to government customers, resulting in the U.S. paying more than it should have for Corning’s products.
Of the $5.65 million Corning has agreed to pay the federal government to settle the claims, the whistleblower will receive $904,000 as his reward under the qui tam provisions of the False Claims Act.