Charles River Laboratories International Inc. Agrees to Pay United States $1.8 Million to Settle False Claims Act Allegations | WPN World People News

Charles River Laboratories International Inc. has agreed to pay the U.S. government $1.8 million to settle claims that it violated the False Claims Act by improperly charging for labor and other associated costs that were not actually provided on certain National Institutes of Health contracts, the Justice Department announced March 13. Charles River is a for-profit corporation headquartered in Wilmington, Massachusetts.

“Contractors are expected to deal fairly with federal agencies when receiving taxpayer funds,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “The Department of Justice will continue to ensure that contractors spend taxpayer dollars appropriately and that those who do not are held accountable.”

Charles River holds contracts with National Institutes of Health (NIH) for services relating to the development, maintenance, and distribution of colonies of animals as well as the provision of laboratory animals to the NIH. Charles River billed to NIH labor and associated costs of employees at its Raleigh, North Carolina and Kingston, New York facilities despite the fact these individuals did not render the services as Charles River had claimed. Charles River disclosed the improper billing to the Department of Justice and the Department of Health and Human Services.

“Companies that do business with the federal government must bill honestly,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG).

Source: U.S. Department of Justice