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Justice Department Takes Close Look At Home Depot Whistle-blower Lawsuit

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The Department of Justice is scrutinizing a whistle-blower lawsuit filed against Home Depot and several other companies, alleging that purchases made under governmental contract violated the Buy American Act of 1933.

According to the Dow Jones Newswire, two former employees of Actus Lend Lease filed the suit against several companies, Actus and Home Depot included. Actus settled last year for less than $1 million, but Home Depot remains as a defendant.

In a statement, Home Depot said  “would never knowingly sell prohibited goods under any circumstances, and we have been cooperating with the government to provide requested information. We believe the plaintiffs have an inaccurate view of the facts.”

A spokesperson for the Department of Defense said that most cases brought against companies by the DOJ under the Buy American Act are settled by the violating companies. Damages recovered in whistle-blower cases are split between the government and the plaintiffs who filed the whistleblower lawsuit.

In March, after Home Depot asked for a dismissal because the DOJ had not intervened in the case, the DOJ replied with a court filing stating that it  “would be erroneous to assume that the government’s lack of intervention reflects its conclusion that the case lacks merit.” The DOJ has not yet decided to join the lawsuit.
 disclaimer: This article: Justice Department Takes Close Look At Home Depot Whistle-blower Lawsuit was posted on Tuesday, June 28th, 2011 at 7:50 pm at and is filed under Fraud Lawsuits.

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