The Corporate Crime Reporter said on January 24, 2007 that a False Claims Act suit was filed against ITT in Manhattan federal court. The FCA requires that relators who are proceeding under the qui tam provisions of the Act file their suit under seal, meaning that its contents are not available for viewing, but that wasn’t originally done in this instance. The complaint is now under seal but it is known that alleges that ITT overbilled the government for security guard services in Bosnia.
The sealing provision allows the Dept. of Justice to investigate the case before the company is made aware of the charges. It protects the whistleblower who may still be working for the company. And it protects the company’s reputation, in the event that the charges are groundless.