Adobe Inc., a leading digital media and analytics firm, has agreed to pay $3 million to settle allegations that it made payments in violation of anti-kickback laws and allowed them “to influence federal purchases” of its software, according to an announcement made by the United States Department of Justice (DOJ) on Thursday. The settlement resulted from alleged “improper payments” made by Adobe under its Solution Partner program to various organizations that maintained contractual or other relationships with the federal government, consequently enabling influence over federal purchases of Adobe software.
The DOJ’s statement revealed that the allegations reportedly spanned from January 2011 to December 2020. During this period, Adobe allegedly paid the companies commissions and other payments under its Solution Partner program. These payments were allegedly made in exchange for recommendations or promotion of Adobe software by those companies, resulting in a direct violation of the federal Anti-Kickback Statute. The statute prohibits the offering, soliciting, payment or acceptance of remuneration to induce or reward referrals, purchases, or the leasing of services or supplies reimbursable under any federal healthcare program.
The improper payments allegedly made by Adobe have been the focus of an extensive investigation conducted by the DOJ, the General Services Administration Office of Inspector General (GSA OIG), the Department of Defense Office of Inspector General (DOD OIG), and the Federal Bureau of Investigation (FBI). The settlement resolves the government’s claims against Adobe without any determination of liability. It is important to note that Adobe did not admit to wrongdoing in the settlement.
The allegations initially surfaced in a 2017 lawsuit filed by former Adobe employees Donald Aiken and Dan Langlais, who acted as whistleblowers in the case. The whistleblowers’ complaint was filed under the qui tam provisions of the False Claims Act, which allows private parties to sue on behalf of the United States for false claims and share in any recovery. The act also permits the federal government to intervene, often leading to successful prosecutions and greater financial recoveries. In this case, the whistleblowers will receive approximately $540,000 as their share of the government’s recovery.
The settlement underscores the government’s continued commitment to enforcing laws that protect its interests from potentially unlawful behavior by companies and individuals. In recent years, the DOJ and other federal agencies have stepped up their oversight and enforcement efforts to combat fraudulent and improper activities in the procurement of government contracts by businesses. This also showcases the significant role whistleblowers can play in exposing fraudulent schemes and aiding the government in investigating and ultimately recovering taxpayer dollars.
While $3 million is not a substantial amount for a company the size of Adobe, the settlement may still impact the company’s reputation and relationships with federal customers. This case highlights the importance for companies to maintain strong compliance programs and internal controls to ensure adherence to federal laws and regulations in their business practices.
In conclusion, Adobe’s $3 million settlement with the DOJ should serve as a reminder to businesses engaging with government customers to review their practices and ensure they are compliant with all applicable laws and regulations. Such compliance is necessary to avoid making potentially improper payments, such as the ones alleged in Adobe’s case. The outcome of this case demonstrates the government’s commitment to enforcing laws that protect the expenditure of taxpayer dollars and reinforces the vital role whistleblowers play in uncovering and addressing fraudulent activity.