LEO BURNETT

Leo Burnett Company, Inc. paid the federal government $15.5 million in early 2009 to settle claims alleging the company overcharged the government for its work on the Army’s “Army of One” advertising campaign.  The complaint covered work Burnett performed between 2000 and 2005 on its $360 million contract—the largest Army advertising contract ever awarded through that time.  The relators, two former high-level executives at Burnett, alleged the company told the Army that an independent subcontractor was working on the internet portion of the campaign, even though Burnett was actually doing the work itself.  This enabled Burnett to charge the Army higher hourly rates for work done on the internet campaign, and also to circumvent the contract’s cap on government reimbursement for Burnett’s in-house work.  The relators also alleged Burnett improperly inflated the hourly rates it billed the Army. The relators ultimately received an award of $2.79 million.

Plaintiffs’ Amended Complaint

Settlement Agreement

U.S. Dept of Justice Press Release