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Ad agency settles FCA suit involving Army ad campaign

By Phillips & Cohen LLP

Leo Burnett, a Chicago advertising firm, has agreed to pay the United States $15.5 million to settle a False Claims Act whistleblower suit.

The settlement resolves allegations that Leo Burnett improperly billed the Army while developing a recruiting website and for advertising under the "Army of One" multimedia advertising campaign. Leo Burnett will make a cash payment of $12.1 million and credit the Army $3.4 million in work performed, but not billed.

The whistleblowers will receive $2.79 million as their share of the settlement.

Full post as published by False Claims Act - Qui Tam on January 08, 2009 (boomark / email).