Verizon settled a whistleblower lawsuit accusing it of overcharging the federal government...
Verizon settled a whistleblower lawsuit accusing it of overcharging the federal government for voice and data services. The carrier agreed to pay the government $93.5 million. The complaint, filed in 2007 in the U.S. District Court for the District of…
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Columbia, alleges that Verizon had billed for “tax-like” surcharges that it wasn’t entitled to impose on the government. The settlement covers 2004-2010, when Verizon was accused of having billed the government items including property tax surcharges, carrier cost recovery charges, state telecom relay service surcharges and public utility commission fee surcharges. The complaint alleges that the “fraudulent billing” began in 1999, under an MCI contract to provide the GSA landline and long-distance voice and data services. Verizon got the GSA contract by taking over MCI in 2006. The settlement benefits all involved, a Verizon spokesman said. Verizon and the government disagree over whether some fees should be charged, he said. The contract entitled Verizon to fees for property tax and other charges, the spokesman said. “Corporations that contract to provide services to federal, state and local governments must play by the rules,” Assistant Attorney General Tony West said.