On April 15, 2025, the U.S. Attorney’s Office for the Northern District of California announced the settlement of a False Claims Act case against Varidesk LLC and Vari Sales Corporations (VARI). Pursuant to the settlement, VARI agreed to pay $1.1 million to resolve allegations that defendants failed to give the government the benefit of the discounts it gave other customers and falsely represented to the government that it was complying with its obligation to give the government the best price in its purchase. The case was initiated by a whistleblower, known as a relator, using the False Claims Act’s unique qui tam provision.
The False Claims Act also provides that a relator is entitled to a portion of the recovery in any successful case. When the government intervenes, as it did in this case, the relator is entitled to between 15-25% of the recovery. The False Claims Act also has a fee-shifting provision pursuant to which the defendant must pay the relator’s attorney’s fees and costs. Here, the relator was awarded $187,000 representing 17% of the recovery and VARI also agreed to pay the relator’s reasonable attorneys’ fees and costs. Keller Grover joined Price Benowitz and the Zuckerman Law Firm in representing the relator in this case.
Keller Grover’s Kathleen Scanlan, who represented the relator, noted: “Fraud involving healthcare and defense contracts regularly makes headlines. But this case highlights another way the government can be defrauded and the importance to be vigilant wherever taxpayer dollars are being lost to fraud.” She added: “We are grateful for the thorough investigation the lawyers and investigators at the U.S. Attorney’s Office for the Northern District of California did in this case and the work they did to recover taxpayer dollars.”
Click here to learn more about Best Price fraud and other frauds involving government procurement contracts. If you have unique information about a scheme that defrauds the U.S. government, involves financial wrongdoing, threatens public safety, or otherwise skirts U.S. or state laws, contact Keller Grover for a free and confidential consultation. Our experienced whistleblower attorneys can answer questions and work with you to develop prudent next steps. In addition to providing a public service, whistleblowers who help expose fraud using established whistleblower programs may be eligible for an award.