WASHINGTON (AP) – The Justice Department said Monday the Gallup Organization has agreed to pay $10.5 million to settle allegations that the polling and market research firm improperly inflated prices for proposed contracts with the U.S. Mint and State Department.
The settlement also resolves allegations that Gallup engaged in improper employment negotiations with an official from the Federal Emergency Management Agency in order to obtain a FEMA subcontract at an inflated price.
In January, the former FEMA official, Timothy W. Cannon, pleaded guilty to negotiating a job for himself at the Gallup Organization while supervising the firm’s FEMA contract.
Cannon’s conduct came to light in a lawsuit a fired Gallup employee brought alleging that Gallup filed false claims on contracts with the U.S. Mint, the State Department, FEMA and the Office of Personnel Management.
In a statement, Gallup said that by ending this civil action with no admission of wrongdoing, Gallup can avoid further distraction and focus on serving its customers. The company said it continues its dedication to the highest standard of ethics in business.
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