Financial Fraud: 3M Company Agrees to Pay For Violated The False Claims Act Selling or Causing To Be Sold Defective Earplugs

<h2>3M Company Agrees to Pay &dollar;9&period;1 Million to Resolve Allegations that It Supplied the United States with Defective Dual-Ended Combat Arms Earplugs<&sol;h2>&NewLine;<p>COLUMBIA&comma; South Carolina &&num;8212&semi;- United States Attorney for the District of South Carolina Sherri Lydon&comma; in conjunction with the Civil Division of the United States Department of Justice &lpar;DOJ&rpar;&comma; announced today that the 3M Company &lpar;3M&rpar;&comma; headquartered in St&period; Paul&comma; Minnesota&comma; has agreed to pay &dollar;9&period;1 million to resolve allegations that it knowingly sold dual-ended combat arms earplugs to the United States military without disclosing defects that hampered the effectiveness of the hearing protection devices&period;<&sol;p>&NewLine;<div class&equals;"mh-content-ad"><script async src&equals;"https&colon;&sol;&sol;pagead2&period;googlesyndication&period;com&sol;pagead&sol;js&sol;adsbygoogle&period;js&quest;client&equals;ca-pub-9162800720558968"&NewLine; crossorigin&equals;"anonymous"><&sol;script>&NewLine;<ins class&equals;"adsbygoogle"&NewLine; style&equals;"display&colon;block&semi; text-align&colon;center&semi;"&NewLine; data-ad-layout&equals;"in-article"&NewLine; data-ad-format&equals;"fluid"&NewLine; data-ad-client&equals;"ca-pub-9162800720558968"&NewLine; data-ad-slot&equals;"1081854981"><&sol;ins>&NewLine;<script>&NewLine; &lpar;adsbygoogle &equals; window&period;adsbygoogle &vert;&vert; &lbrack;&rsqb;&rpar;&period;push&lpar;&lbrace;&rcub;&rpar;&semi;&NewLine;<&sol;script><&sol;div>&NewLine;<p>The settlement announced today resolves allegations that 3M violated the False Claims Act by selling or causing to be sold defective earplugs to the Defense Logistics Agency&period; Specifically&comma; the United States alleged that 3M&comma; and its predecessor&comma; Aearo Technologies&comma; Inc&period;&comma; knew that its Combat Arms Earplugs&comma; Version 2&comma; were too short for proper insertion into users’ ears and that the earplugs could loosen imperceptibly and therefore did not perform well for certain individuals&period; The United States further alleged that 3M did not disclose this design defect to the <a class&equals;"wpil&lowbar;keyword&lowbar;link" href&equals;"https&colon;&sol;&sol;www&period;fraudswatch&period;com&sol;category&sol;military-scammer&sol;amp&sol;" title&equals;"military" data-wpil-keyword-link&equals;"linked" data-wpil-monitor-id&equals;"393">military<&sol;a>&period;<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Today’s settlement demonstrates our continuing vigilance to protect the men and women serving in the United States military from defective or fraudulent products&comma;” said Acting Assistant Attorney General Chad A&period; Readler of the Department’s Civil Division&period; &OpenCurlyDoubleQuote;Government contractors who seek to profit at the expense of our military will face appropriate consequences&period;”<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Through rigorous enforcement of the False Claims Act&comma; we protect taxpayer dollars from waste&comma; fraud&comma; and abuse&comma;” said U&period; S&period; Attorney Sherri Lydon&period; &OpenCurlyDoubleQuote;And in this case in particular&comma; we are proud to defend the integrity of our military programs and ensure that our men and women in uniform are adequately protected as they serve our country&period;”<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;Today’s settlement will ensure that those who do business with the government know that their actions will not go unnoticed&comma;” said Frank Robey&comma; director of the U&period;S&period; Army Criminal Investigation Command’s Major Procurement Fraud Unit&period; &OpenCurlyDoubleQuote;Properly-made safety equipment&comma; for use by our Soldiers&comma; is vital to our military’s readiness&period; Our agents will respond robustly to protect the safety of our military&period;”<&sol;p>&NewLine;<p>&OpenCurlyDoubleQuote;This settlement demonstrates the commitment of the Defense Criminal Investigative Service and our law enforcement partners to hold companies accountable for supplying substandard products&comma; in particular products that could directly impact our service members’ health and welfare&period; DCIS protects the integrity of Defense Department programs by rooting out fraud&comma; waste&comma; and abuse that negatively affect the wellbeing of our troops&comma;” said Special Agent in Charge Robert E&period; Craig&comma; Jr&period;&comma; DCIS Mid-Atlantic Field Office&period;<&sol;p>&NewLine;<p>The allegations resolved by the settlement were brought in a lawsuit filed under the qui tam&comma; or whistleblower&comma; provisions of the False Claims Act&period; The act permits private parties to sue on behalf of the government when they believe that defendants submitted false claims for government funds and to share in any recovery&period; As part of today’s resolution&comma; the whistleblower will receive &dollar;1&comma;911&comma;000&period;<&sol;p>&NewLine;<p>The settlement was the result of a coordinated effort by the Civil Division of the Department of Justice and the United States Attorney’s Office for the District of South Carolina&comma; with support from the Department of Defense&period; The settlement was handled by Assistant United States Attorneys Stan Ragsdale and Brook Andrews and DOJ Trial Attorney Brandie Weddle&period; The case was investigated by Special Agent Jennifer Coleman of the U&period;S&period; Army Criminal Investigation Command and Special Agent Gil Rosen of the Defense Criminal Investigative Service&period;<&sol;p>&NewLine;<p>The case is captioned United States ex rel&period; Moldex-Metric v&period; 3M Company&comma; Case No&period; 3&colon;16-cv-1533-MBS &lpar;D&period;S&period;C&period;&rpar;&period; The claims resolved by the settlement are allegations only&comma; and there has been no determination of liability&period;<&sol;p>&NewLine;

Financial Fraud