Informatica Agrees to Pay $21.57 Million for Alleged False Claims Caused by Its Commercial Pricing D

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https://www.justice.gov/opa/pr/informatica-agrees-pay-2157-million-alleged-false-claims-caused-its-commercial-pricing

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Monday, May 13, 2019

Informatica Agrees to Pay $21.57 Million for Alleged False Claims Caused by Its Commercial Pricing Disclosures

Informatica LLC f/k/a Informatica Corporation has agreed to pay $21.57 million to resolve allegations that it caused the government to be overcharged by providing misleading information about its commercial sales practices that was used in General Services Administration (“GSA”) contract negotiations, the Justice Department announced today. Informatica is a software development company, headquartered in Redwood City, California that sells tools for establishing and maintaining data warehouses.
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Informatica allegedly knowingly provided false information concerning its commercial discounting practices for its products and services to resellers, who then used that false information in negotiations with GSA for government-wide contracts called “Multiple Award Schedule contracts.” Under these contracts, GSA uses commercial pricing disclosures to negotiate the maximum prices that a vendor can charge government agencies. Here, Informatica’s allegedly false disclosures caused GSA to agree to less favorable pricing, and, ultimately, government purchasers to be overcharged. The settlement also resolves allegations that Informatica caused sales to the United States in violation of the Trade Agreement’s Act, which restricts the country of origin for goods purchased by the government.
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The allegations resolved by this settlement arose from a whistleblower lawsuit filed under the False Claims Act. The act permits private citizens to sue on behalf of the government and share in any recovery. The whistleblower, who is a former employee of Informatica, will receive $4,314,000.