La. Firm to Pay $1M in False Claims Act Case

A company that had a contract for providing security services at Department of Energy installations has agreed to pay about $1 million to settle allegations it improperly billed the government for health insurance costs.

The settlement announced Friday by U.S. Attorney Jim Letten’s office in New Orleans resolves Pinkerton Government Services Inc.’s potential liability under the False Claims Act.

PGS allegedly failed to seek approval to bill for its employees’ health care expenses. The company is a subsidiary of Securitas Security Services USA Inc.

The Justice Department’s investigation was initiated by a lawsuit filed by two so-called “whistleblowers,” who will receive nearly a $173,000 share of the settlement proceeds.