Government Wins $128 Million in Qui Tam Suit Against NetApp

The whistle has been blown on a General Services Administration (GSA) contractor who will now pay the U.S. government $128 million for allegedly failing to offer, “its best commercial pricing on information technology goods and services.” A lawsuit was filed by former Network Appliance (NetApp, Inc.) employee, Igor Kapuscinski, who’s complaint led to the investigation.

In February 2003, a GSA analyst reached out to obtain information from NetApp during a “review of orders”. Kapuscinski’s concerns that NetApp had not given the same price decrease offered to commercial customers, an explicit requirement in a contract between the two, were dismissed by his supervisors. Kapuscinski filed the lawsuit against NetApp on the government’s behalf.