February 02, 2007
Travelers Casualty and Surety Company and Electronic Data Systems have agreed to pay the United States $2,850,000 to settle claims brought under the whistleblower provisions of the False Claims Act. The settlement resolves allegations that the companies paid for flood insurance losses knowing that those losses were not covered by National Flood Insurance Program policies.
The allegations were originally brought by a former EDS employee in a whistleblower suit.
Southern Maryland Online ran a story on the settlement on January 18, 2007.