CDM Smith INC/CDM Federal Programs Corporation False Claims Act Lawsuit 5.65 Million Settlement

Companies: CDM Smith, Inc., CDM Federal Programs Corporation

WASHINGTON, Aug. 27, 2020 — Sanford Heisler Sharp announced that CDM Smith, Inc., a construction and engineering company, and its wholly owned subsidiary CDM Federal Programs Corporation, which serves government agencies, have agreed to pay $5.65 million to the United States to settle False Claims Act and contractual claims.

Sanford Heisler Sharp represented Relator Vincent Bevilacqua who filed the case against CDM Smith, Inc. and CDM Federal Programs Corporations in the U.S. District Court for the Eastern District of Virginia under the whistleblower provisions of the federal False Claims Act in December 2018. Bevilacqua was represented by the firm’s Washington, DC Managing Partner and co-chair of the firm’s whistleblower practice, H. Vincent McKnight and Senior Litigation Counsel Christine Dunn. The United States was represented by Krista Anderson of the United States Attorney’s Office for the Eastern District of Virginia.

Bevilacqua, a former employee of CDM Smith, alleged that CDM Smith and CDM Federal Programs Corporation engaged in a scheme to submit inaccurate cost and labor hour estimates and related certifications in a contract with the Naval Facilities Engineering Command, Atlantic.

“Companies that enter into contracts with the federal government must do so fairly and honestly. Mr. Bevilacqua is proud to have assisted the United States Attorney’s Office in sending a message that government contractors cannot take advantage of government agencies,” noted Vincent McKnight.

CDM Smith and CDM Federal Programs Corporation agreed to pay approximately $5.65 million to settle the claims against them. The Relator will receive $848,084 of that federal settlement.