Morsell v. Symantec Corporation
Civil Action No. 2012-0800
| D.D.C. | Aug 30, 2024Background
- Lori Morsell brought a qui tam action against Symantec (now Gen Digital, Inc.) in 2012, alleging False Claims Act violations related to a GSA Master Award Schedule (MAS) contract.
- The central allegation was that Symantec did not disclose non-standard discounts and rebates to GSA, impacting the government’s ability to negotiate fair pricing.
- The United States, California, and Florida intervened; the case went to a bench trial in 2022.
- The court initially awarded partial damages and penalties to the United States and California, later amending those figures upwards after granting in part a government motion for reconsideration.
- Symantec moved to further amend and supplement the amended findings, arguing certain sales were improperly included in the damages and penalty calculations, but the court denied this motion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Inclusion of "open market" sales in damages/penalty calculations | Only sales under the GSA contract were included; identified by Symantec’s own data | Sales lacking GSA MSRP were actually open market sales and should be excluded | Court found Symantec’s coding and the expert’s process persuasive; motion denied |
| Inclusion of sales predating contract formation | Sales were coded as GSA sales and may have been booked/completed post-contract | Sales before contract should not factor into damages or penalties | Any minor inclusion was not clear error or manifest injustice |
| Methodology for calculating rebate damages | 3% rebate should apply to total GSA contract sales, conservatively estimated | Rebates should only apply to proper subset, not inflated by ineligible sales | Court upheld government’s approach and found no manifest injustice |
| Calculation of civil penalties for false claims | Every claim under the contract was false due to undisclosed rebates | Only a subset of claims should be penalized (excluding open market/pre-contract) | Court upheld penalties for all identified claims |
Key Cases Cited
- Ashraf–Hassan v. Embassy of France, 185 F. Supp. 3d 94 (D.D.C. 2016) (elaborates Rule 52(b) standard for correcting manifest errors of law or fact)
- Leidos, Inc. v. Hellenic Republic, 881 F.3d 213 (D.C. Cir. 2018) (discusses Rule 59(e) circumstances: change in law, new evidence, clear error, or manifest injustice)
- Smith v. Lynch, 115 F. Supp. 3d 5 (D.D.C. 2015) (sets out the high standard for showing clear error on reconsideration)
- Anyanwutaku v. Moore, 151 F.3d 1053 (D.C. Cir. 1998) (Rule 59(e) relief only for extraordinary circumstances)
