Advocates for Justice

The United States Department of Justice and Cotchett, Pitre & McCarthy, LLP announced today a $75.5 million settlement of claims against VMware, Inc. and Carahsoft Technology Corporation, in a False Claims Act case prosecuted by Cotchett, Pitre & McCarthy, LLP and the Law Office of Jeffrey F. Ryan on behalf of Relator Dane Smith. VMware is the market leader in “virtualization” technology, and the fifth-largest software company in the world. The action was filed in 2010 by Dane Smith, the former Vice President of Americas Sales for VMware. The settlement represents one of the five largest recoveries against a technology company in the history of the False Claims Act. 

One of the most important factors in any case under the False Claims Act (federal or California), is whether the government decides to “intervene.” Oftentimes, however, when the government intervenes, it does not intervene on all of the qui tam plaintiff’s theories. The question then sometimes arises of how the non-intervened theories or claims should be treated. Defendants have argued that non-intervened claims must be dismissed. In fact, under both federal and California law, the qui tam plaintiff has full authority to proceed with non-intervened claims.  

In this day and age, virtually all federal and state government agencies have integrated computer systems and technologies into their everyday business. As a result, technology companies are selling computer systems and data management products to the government on a level that rivals, and often exceeds, their sales to other commercial organizations. To manage government purchases and effectively utilize taxpayer monies, the federal government’s General Services Administration (GSA) utilizes the Multiple Award Schedule (MAS) to set pre-negotiated prices for government agencies to purchase products from commercial companies, including entering into larger purchasing agreements, known as “blanket purchase agreements” (BPAs). 

On June 16, the same day as the balcony collapse in Berkeley killed six people and seriously injured at least seven others, the New York Times published a story on the tragedy under the headline “Deaths of Irish Students in Berkeley Balcony Collapse Cast Pall on Program.”  The “pall” is not on the victims of this tragedy, nor on a program that has allowed thousands of Irish citizens to spend a summer living in the U.S.  The “pall” is on whoever is at fault in constructing and maintaining a balcony that should never have collapsed, and on those who would blame a party atmosphere for the tragedy, and who would resort to stereotyping and underhanded victim blaming.  

Balcony and deck collapses are all too common – especially in the Bay Area.  Collapses occur through structural defects as well as through lax and deferred maintenance.  An example is the tragic balcony collapse that occurred at 12:41 a.m. on June 16, 2015 in Berkeley (Bay Area of California), which as of 9:00 a.m. had claimed six lives with many more victims in the hospital with major and life threatening injuries.  Most of the victims of this tragedy were Irish students spending their summer on work visas.