May 27, 2018

CyTerra Enters $1.9 Million Settlement to Resovle False Claims Act Allegations

Editor’s note: We’ve brought this older blog post out from our archives to showcase how justice is served in False Claims Act litigation. Today, whistleblowers are exposing corruption at companies and in governmental bodies. We feel that this is actually a form of patriotism and are delighted to be of assistance in Qui Tam lawsuits for our clients.

CyTerra, headquartered in Waltham Massachusetts, manufactures, among other equipment, portable mine detectors used by the U.S. Military.  The false claims allegations alleged that CyTerra failed to provide the U.S. Department of the Army with accurate, complete and current cost or pricing data for the sales of its portable mine detectors.

CyTerra was awarded a Department of the Army contract in 2003 for the production and delivery of AN/PSS-14 hand-held mine detection units. The contract was modified several times and the government contended that during these contract modification negotiations, CyTerra knowingly failed to provide the Army with the most recent cost or pricing data related to the number of labor hours required to produce a portable mine detector.  CyTerra was required under the Truth in Negotiations Act to provide cost or pricing data that was accurate, complete and current. The allegations stated that if the govenrment had been aware of the correct pricing and costs, it would have negotiated for a lower price.

The allegations were included in the qui tam case filed by Kevin Bartczak and Keith Aldrich, two former CyTerra executives.  These two whistleblowers will share $361,000 from the total civil recovery of $1.9 million.

Visit our Qui Tam Results page to learn how Berg & Androphy have assisted other whistleblowers in their legal cases against corrupt businesses and organizations, often with financial rewards as part of the legal actions. B&A have many years of experience in this complicated area of U.S. jurisprudence.