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Verizon Pays $93.5 Million To Resolve Allegations That It Overcharged Government Under Telecommunications Services Contracts

On April 5, 2011, the U.S. Department of Justice announced that Verizon Communications, Inc. has paid the Government approximately $93.5 million to settle a lawsuit brought under the False Claims Act alleging that the company improperly invoiced the Government Services Administration (GSA) for a variety of federal, state, and local taxes and surcharges in violation of government-wide voice and data telecommunications services contracts.  According to the lawsuit, Verizon submitted false claims for reimbursement of property taxes, common carrier recovery charges, and unallowable surcharges that are not directly reimbursable under the GSA contracts.