NEW YORK – Verizon Communications Inc., the second-largest U.S. phone company, paid the U.S. $93.5 million to resolve allegations it overcharged the U.S. General Services Administration.
The U.S. Justice Department and the GSA, which supports federal agencies with products and communications, found New York-based Verizon submitted false claims for reimbursement of property taxes, common-carrier recovery charges and unallowable surcharges, according to an emailed statement from the Justice Department announcing the settlement.
“Corporations that contract to provide services to federal, state and local governments must play by the rules,” Assistant Attorney General Tony West said in the statement.
The whistle-blower lawsuit was filed on behalf of the government by Stephen M. Shea and 2Probe LLC, according to the statement.
“Verizon cooperated closely with the government throughout the process,” Peter Lucht, a Verizon spokesman, said in an interview. “It was in the best interest of all parties to settle the matter. The government and Verizon disagreed on whether certain fees could be charged under the contract, so their settlement concludes the efforts by both parties to resolve the dispute amicably.”
AT&T Inc., based in Dallas, is the the largest U.S. phone company.
The case is U.S. v. Verizon Communications Inc., 07-cv-111, U.S. District Court, District of Columbia (Washington).
