NYC Contractors Reach Settlement in Hurricane Sandy Fraud Suit

New York City-licensed contractors SLSCO L.P. and Baumgardner House Raising LLC resolved a False Claims Act suit alleging the companies improperly received federal funds under a program to repair houses affected by Hurricane Sandy in 2012.

The contractors, as well as whistleblowers Michael McSherry and Lisa Palma McSherry, reached a settlement effective Sept. 23, according to a joint stipulation of dismissal they filed Monday with the US District Court for the Eastern District of New York. The government consented to the dismissal also on Monday. The parties didn’t immediately respond to a request for comment.

• The whistleblowers said the housing ...