A settlement reached to resolve False Claims Act Allegations against My Pillow Inc.
The whistleblowers' share of the settlement will be $221,800.00.
The allegations arose by a lawsuit claiming My Pillow Inc knowingly failed to collect and remit New York use taxes on Internet and telephone sales to New York customers.
According to the Attorney General’s Office, from 2011-2015, My Pillow Inc failed to collect and remit approximately $537,000 in sales taxes on taxable sales made over the phone and through the Internet to New Yorkers and the Company intentionally made false records or statements concerning the sales taxes it was required to collect and remit.
“Out-of-state companies like My Pillow cannot shirk their obligations to New York," New York Attorney General Eric T. Schneiderman stated. "Companies that fail to collect and remit applicable sales taxes harm the state and local governments—something that cannot be tolerated.”
Based in Chaska, Minnesota, and founded in 2004 My Pillow Inc is a pillow manufacturing company.