Gallup Organization to Pay $10.5 Million to Resolve Whistleblower Lawsuit Alleging Fraud on U.S. Government

Gallup Organization to Pay $10.5 Million to Resolve Whistleblower Lawsuit Alleging Fraud on U.S. Government

The U.S. Department of Justice announced on July 15, 2013, that it reached a settlement with the Gallup Organization over charges that Gallup had violated the False Claims Act and the Procurement Integrity Act in connection with federal contracts. Gallup has agreed to pay $10.5 million to resolve these allegations that were first asserted in a whistleblower qui tam lawsuit filed by former Gallup employee Michael Lindley on October 21, 2009. The Department of Justice joined Lindley’s whistleblower lawsuit in August 2012.  Lindley’s lawsuit was brought on his behalf by the Washington D.C. whistleblower law firms of Katz, Marshall & Banks, LLP and Vogel, Slade & Goldstein, LLP.

Lindley, a former client services director for Gallup, had alleged that the firm that calls itself “the most trusted name in polling” engaged in fraud in its contracts with the U.S. Mint and the U.S. Department of State.  According to Lindley’s complaint, filed under seal in 2009, Gallup inflated the cost estimates it provided to the agencies, resulting in higher contract prices and enabling Gallup to garner huge profits from its government business.  Lindley alleges that Gallup’s actions defrauded the government out of tens of millions of dollars.

Lindley and Gallup resolved Lindley’s claims for unlawful termination in a confidential settlement reached earlier this year. Lindley will receive $1,929,363 as his share of the government’s July 15, 2013, settlement with Gallup.

According to whistleblower lawyer David J. Marshall, a partner with Katz, Marshall and Banks, LLP, who also represented Lindley in the litigation, “Michael Lindley stood up to Gallup’s wrongdoing at great risk to himself. The company fired him for trying to stop the fraud, but Michael fought back.” Marshall added, “Michael Lindley used the federal whistleblower law not only to vindicate himself but also to help the taxpayers recover a considerable sum from Gallup.”

 

Coverage

Gallup Organization to Pay $10.5 Million to Resolve Whistleblower Lawsuit Alleging Fraud on U.S. Government
July 15, 2013

FEMA Director Identified in Gallup Whistleblower Complaint Pleads Guilty
January 15, 2013

Gallup Whistleblower Buoyed by Government Decision to Charge FEMA Director
January 4, 2013

Press Release Jointly Issued by Katz, Marshall & Banks and Vogel, Slade & Goldstein
November 28, 2012

Washington Post: Gallup accused of bilking government
November 28, 2012

Law360: DOJ Widens Gallup Whistleblower Suit Over Billing Practices
November 28, 2012

Press Release Jointly Issued by Katz, Marshall & Banks and Vogel, Slade & Goldstein
August 22, 2012

Press Release Issued by the United States Department of Justice
August 22, 2012

NBC News: US sues Gallup, alleging pollster overcharged on government contracts
August 22, 2012

Law360: Feds Jump Into Gallup Whistleblower's $10M FCA Suit 
August 22, 2012

USA Today: U.S. joins false claims suit against Gallup polling firm
August 22, 2012

 

Case Materials

United States v. Cannon Criminal Conflict of Interest Information
January 2, 2012

First Amended Complaint: United States of America and Michael Lindley v. The Gallup Organization
November 27, 2012

United States Government Notice of Election to Intervene
August 2, 2012

Complaint: United States of America and Michael Lindley v. The Gallup Organization
October 21, 2009