Inchcape Shipping Services to pay $20 million to resolve overbilling allegations

(Editor's Note: This has been updated to reflect an Inchcape statement received subsequent to posting.)

Inchcape Shipping Services and subsidiaries have agreed to pay $20 million to resolve allegations they knowingly overbilled the Navy, the Justice Department said today.

Inchcape, which is headquartered in the United Kingdom, provided Navy ships with a variety of goods and services, from waste removal to force protection, at ports around the world, according to DOJ.

"The lawsuit alleged that from 2005 to 2014, Inchcape knowingly overbilled the Navy for these services by submitting invoices that overstated the quantity of goods and services provided, billing at rates in excess of applicable contract rates, and double-billing for some goods and services," the Justice Department said.

Three former Inchcape employees filed the lawsuit under whistleblower provisions of the False Claims Act. The whistleblowers will receive about $4.4 million, the Justice Department said.

Under the settlement, the claims in the case remain allegations and there was no determination of liability.

In a statement released this afternoon, Inchcape said it "disputes the allegations made by the United States and individual plaintiffs in the litigation."

While the company "remains confident in its legal positions, the action was filed eight years ago and yet remains in its earliest stages. Absent this settlement, the litigation would likely continue to distract Inchcape personnel and drain resources for years to come.

"Inchcape, accordingly, has determined that it must put this matter behind it, so that the company can focus on the future," the statement continues. "The United States, the individual plaintiffs, and the Inchcape entities that are involved have entered the settlement agreement ending this matter without any finding of fault related to the disagreements that underlie the litigation."

Inchcape said it had "cooperated fully" with the investigation, adding: "Inchcape and the United States Navy have worked together since early 2014 under an Administrative Agreement to ensure that Inchcape has substantial controls and processes in place to maintain operations with the United States Navy."