Corning caught overcharging U.S. and pays $5.65 million to settle whistleblower case

Corning Inc. paid $5.65 million to settle allegations that it overbilled the U.S. government for lab research products sold to the government. The whistleblower who reported it to the government and filed a lawsuit is ΠKevin Jones, an account manager for Corning from 2001-2009. He alleged that the company relied on discount pricing schemes to charge the government more than large volume private customers. He also alleged that Corning engaged in illegal kickbacks in which company sales staff provided federal employees with gift cards from American Express, Apple iTunes and other retailers in exchange for large Corning orders. Jones will receive $904,000 from the settlement, according to the Justice Department. Jeffrey Newman respresents whistleblowers.