History
  • No items yet
midpage
Morsell v. Symantec Corporation
Civil Action No. 2012-0800
| D.D.C. | Aug 30, 2024
Read the full case

Background

  • 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)
Read the full case

Case Details

Case Name: Morsell v. Symantec Corporation
Court Name: District Court, District of Columbia
Date Published: Aug 30, 2024
Docket Number: Civil Action No. 2012-0800
Court Abbreviation: D.D.C.