TracFone to Pay $13.4 Million to Settle False Claims Allegations

TracFone Wireless Inc. has agreed to pay $13.4 million as part of a civil settlement to resolve False Claims Act allegations of signing up ineligible customers in connection with the Federal Communications Commission’s Lifeline Program, according to the Department of Justice on Monday.

The United States alleged that the Miami-based telecommunications carrier impermissibly signed up more than 175,000 subscribers between 2012 and 2015 who were ineligible for the program, which provides nearly $2 billion each year to assist low-income consumers with telecommunications needs.

The carrier allegedly failed to adequately review applications and didn’t properly investigate reports of ineligible subscribers enrolled ...