Qui Tam Whistleblower Awarded Attorney Fees in Buy American Act Case
On April 29, a whistleblower who alleged violations of the Buy American Act (“BAA”) by a scientific instrument technology company, was awarded $168,000 in attorneys fees and costs as a prevailing party in a False Claims Act case. The whistleblower was previously awarded $124,500 after his qui tam lawsuit resulted in a $625,000 False Claims Act settlement between Instec Inc. and the U.S. Department of Justice in September of 2022.
“This case demonstrates how important it is for whistleblowers who report fraud by government contractors to be fully compensated under the False Claims Act,” said David K. Colapinto, a founding partner of the Washington, D.C. whistleblower law firm, Kohn, Kohn & Colapinto, LLP, (“KKC”) and co-counsel for the whistleblower.
“I am honored to have worked with Dave Colapinto and his team at KKC to bring this matter to a successful conclusion and, together with our courageous client, to assist federal prosecutors and investigators in holding this federal defense and technology contractor accountable for violating federal contract-related laws,” stated Colapinto’s co-counsel, former federal prosecutor Kenneth M. Harmon, principal of the Colorado-based Law Office of Kenneth M. Harmon, LLC.
In 2020, Bryan Swanton, a former Instec employee, filed a qui tam action against the Boulder, Colorado-based company and its owner Dr. Zhong Zou. Swanton alleged in United States ex rel Swanton v. Zou, et al, No. 20-cv-01742 (D. Colo.), that Instec and Zhou did not comply with the requirements of the BAA when selling scientific instruments to federal agencies and national laboratories, including the Naval Research Laboratory and the NASA Jet Propulsion Laboratory.
The BAA creates a preference for domestic products when the government purchases supplies. Swanton alleged that Instec and Zhou falsely certified to the government that products they had produced in China were domestic products.
In September 2022, Swanton’s qui tam action resulted in a $625,000 settlement to resolve the allegations. Swanton received $124,500 (19.92%) as the relator’s share of the DOJ settlement. Under the False Claims Act’s qui tam provisions, qualified whistleblowers are eligible to receive between 15-30% of the settlement connected with their qui tam action.
Following the 2022 settlement, litigation in the case continued over whether Swanton was entitled to attorney fees. On April 29, a federal judge awarded $168,000 in attorneys fees and costs.
“Our client had tremendous courage to report these alleged BAA violations to the government. But for Mr. Swanton’s decision to blow the whistle, the government would never have discovered these alleged false certifications and false claims,” Harmon said.
“Despite losing his job, Mr. Swanton still filed a False Claims Act complaint, resulting in the government’s intervention and settlement, saving the taxpayers hundreds of thousands of dollars and stopping further violations,” Colapinto said.
