Siemens (NYSE:SI) slipped a whistleblower lawsuit alleging that it overcharged the U.S. Veterans Affairs Dept. for ultrasound and magnetic resonance imaging devices.
William Thomas, an ex-manager with Siemens Medical USA who oversaw its contracts with group purchasing organizations, filed the suit in 2009, alleging that Siemens failed to include discounts given to other customers when it bid for the VA contract, according to court documents.
But Judge Timothy Savage of the U.S. District Court for Eastern Pennsylvania, citing the government’s testimony that "VA had complete, contractually required information regarding the two contracts that had been audited," granted Siemens’ motion for summary judgment and dismissed the case, according to the documents.
"Despite the government’s unequivocal statement that it was not defrauded, Thomas has cobbled together facts that he perceives as suspicious and probative of fraud. But, he has been unable to fit them together to prove that fraud occurred. He has failed to present facts controverting the government’s own admission that it had not been misled and had not been harmed. Thomas could have conducted discovery of the government, but chose not to do so," Savage wrote. "Thomas has failed to produce sufficient evidence to present a factual issue as to whether: (1) SMS made any false statements; (2) the omissions or false disclosures were material to VA’s decision to award the contracts; or (3) the government was actually misled or induced into awarding any of the contracts at issue."