Department of Justice Stings Insect Shield LLC and Co-Founder’s Estate with $1.4M Settlement of Insect Repellent False Claims Act Allegations

By the Constantine Cannon Whistleblower Team

The United States Department of Justice (DOJ) announced a $1.4 million False Claims Act settlement to resolve claims Insect Shield LLC falsified test results for the insect repellent it applied to Army combat uniforms. The settlement will come from Insect Shield as well as the Estate of Richard Lane, a co-founder and co-owner of the company who passed away in December 2022.[1]

The Allegations Against Insect Shield and Lane’s Estate

Insect Shield provided insect repellent as a subcontractor for several contracts for Army Combat Uniforms. The DOJ, who intervened in this whistleblower case, alleged Insect Shield violated the False Claims Act by falsifying test results concerning the application of the insect repellent permethrin to the uniforms.[2]

The DOJ claimed that from 2015 to 2021, Insect Shield and Lane did not comply with permethrin testing requirements. According to DOJ, Insect Shield and Lane improperly merged results from different test rounds, re-labeled samples to obscure their true origin, conducted more re-tests than the contract allowed, and hid failing test results.

Whistleblower-Originated Case

The settlement resolves a lawsuit filed under the qui tam or whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the United States when false claims for government funds are submitted, and to receive a portion of any recovery. As part of the settlement, the relator (or whistleblower) Ms. Downs will receive $315,000. The qui tam case, U.S. ex rel. Downs v. Insect Shield, LLC et al., No. 1:19-cv-1026, was filed in the United States District Court for the Middle District of North Carolina.

Comments on the Case

Special Agent in Charge Christopher Dillard of DCIS Mid-Atlantic Field Office said: “The Defense Criminal Investigative Service (DCIS), is fully committed to safeguarding the integrity of the DoD procurement process. Manipulating and failing to perform contractually required testing is not only fraudulent, but compromises military readiness. DCIS will continue to collaborate with our law enforcement partners and the Department of Justice to investigate and hold accountable those who submit false claims.”[3]

Constantine Cannon attorney Dan Noel commented: “The False Claims Act was created more than 160 years ago to stop companies from providing faulty equipment and supplies to the military. This is a fitting reminder that the Government will continue to go after procurement fraud even for contracts we don’t typically think about, like mosquito repellent.”

Our Firm Represents False Claims Act Whistleblowers

If you believe you have a procurement fraud case or would like to learn more about blowing the whistle, please contact Constantine Cannon’s Whistleblower Team for a free and confidential consultation.

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Sources:

[1] See https://www.justice.gov/opa/pr/insect-shield-llc-and-co-founders-estate-agree-pay-14m-settle-allegations-false-claims

[2] Id.

[3] Id.

Tagged in: False Claims Act, qui tam,