$87.5 Million False Claims Act Settlement Highlights Risks of Holding a GSA Schedules Contract

On 25 May 2010 the Department of Justice (DoJ) announced one of the largest settlements ever involving the U.S. General Services Administration's (GSA's) popular Multiple Award Schedules (Schedules) contract program. The settlement resolves allegations of fraud under the False Claims Act (FCA) against EMC Corporation and comes on the heels of DoJ's 2009 record settlement of $128 million involving another IT company's Schedules contract. The EMC settlement marks the latest in a series of developments highlighting the significant risks associated with the GSA Schedules program.

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