Gen Digital’s $55.1M Settlement Closes the Curtain on a Decade-Long Fraud Battle

After ten years of legal wrangling, Gen Digital Inc. — the tech giant once known as Symantec Corp. — has paid $55.1 million to settle a False Claims Act case involving overcharges to the U.S. government. The hefty payout, which includes $16.1 million in damages and $36.8 million in civil penalties, wraps up one of the longest-running procurement fraud battles in recent memory.

The saga began with a whistleblower’s claims that Symantec had deliberately fudged its pricing disclosures during negotiations for a lucrative General Services Administration (GSA) contract. Those alleged misrepresentations not only secured higher payments than the government should have agreed to but also continued for years, all while the company certified its pricing as fair and accurate.

The case wasn’t just about dollars and cents — it was about trust. Federal contracts hinge on transparency, and according to the Department of Justice (DOJ), Symantec violated that trust. “The department will hold accountable contractors that knowingly overcharge the United States to enrich themselves,” said Principal Deputy Assistant Attorney General Brian M. Boynton.

Boynton also underscored the DOJ’s commitment to protecting taxpayer funds, noting the case’s drawn-out nature. “The years spent litigating this case and taking it to trial demonstrate our steadfast commitment to ensuring that fraud does not pay,” he said.

Missteps in the Spotlight
The trial court’s findings, following a four-week bench trial in early 2022, painted a clear picture: Symantec had not only misled GSA in contract negotiations but also violated the Price Reduction Clause, a key safeguard that ensures Uncle Sam gets a fair deal. By withholding truthful pricing information, the company deprived the government of discounts it was entitled to — and overbilled taxpayers in the process.

U.S. Attorney Matthew M. Graves for the District of Columbia didn’t mince words, emphasizing the broader implications of the verdict. “The trial team secured a $55 million judgment that holds accountable a contractor who intentionally tried to overbill the government,” Graves said. “These schemes steal taxpayer dollars, and we will pursue fraudsters through trial, if necessary, to secure a just outcome.”

The case was brought to light by Lori Morsell, a Symantec insider who had overseen the contract in question. Her lawsuit, filed under the False Claims Act’s qui tam provision, allowed her to act on behalf of the government and share in the recovery. While her portion of the settlement hasn’t yet been determined, her actions played a critical role in holding the company accountable.

Whistleblowers like Morsell often serve as the first line of defense against fraud in federal contracting. Their willingness to step forward provides agencies like the DOJ and GSA with the leverage needed to uncover complex schemes.

A Hard-Learned Lesson
For Gen Digital, the settlement ends a bruising chapter in its corporate history — but not without lasting repercussions. Beyond the financial penalty, the case sends a powerful message to other federal contractors: playing fast and loose with the rules isn’t just risky; it’s expensive.

For taxpayers, the verdict is a reminder of the importance of rigorous oversight and the value of whistleblowers who shine a light on wrongdoing. And for the DOJ and GSA, it’s proof that persistence pays off, even if justice takes a decade to deliver.

“Fair prices and accurate information aren’t just expectations — they’re requirements,” said GSA Deputy Inspector General Robert C. Erickson. “This outcome is a testament to what we can achieve when agencies work together to uphold those standards.”

With the settlement now paid, Gen Digital might hope to turn the page, but the case leaves an indelible mark - one that contractors and compliance professionals won’t soon forget.

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