AECOM Agrees to $12 Million Settlement in Katrina Fraud Suit (2)

AECOM agreed to pay nearly $12 million to resolve allegations it violated the False Claims Act by knowingly submitting false claims to FEMA to replace certain Louisiana educational facilities damaged by Hurricane Katrina in 2005, the Justice Department said Tuesday.

Whistleblower Robert Romero sued in 2016 in the US District Court for the Eastern District of Louisiana. He will receive more than $2.4 million as part of the settlement, the announcement said.

The US government joined the suit in 2020. It asserted that AECOM, a technical assistance contractor, used inflated repair estimates and other false information that improperly increased ...