A settlement has been reached in a whistleblower class action lawsuit brought against CyTerra Corporation who is accused of failing to provide the U. S. Department of the Army with accurate, complete and current cost or pricing data for its sales of mine detectors.
Two whistleblowers that filed the initial lawsuit will share $361,000 from the civil recovery.
In 2003, the Department of the Army awarded CyTerra a contract for the production and delivery of AN/PSS-14 hand-held mine detection units. The contract was modified several times to provide for the production and delivery of additional mine detection units. The government contended that, in connection with the negotiations concerning three of these contract modifications, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data on the number of labor hours needed to produce a mine detector. Under the Truth in Negotiations Act, CyTerra was required to provide cost or pricing data that was “accurate, complete and current.” The government alleged that if the Army had received such information, it would have negotiated a lower price.
