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thedrifter
01-07-09, 09:39 AM
Burnett to pay $15.5 million for overbilling Army
Associated Press

1:35 p.m. January 6, 2009

Leo Burnett Co. has agreed to pay $15.5 million to settle a federal whistleblower lawsuit that accused it of overbilling the U.S. Army in its “Army of One” recruiting campaign.

The Chicago-based advertising agency was accused of submitting false bills in a 2004 lawsuit filed by two former executives.

Under the settlement announced Tuesday, Burnett admitted no liability but said it settled to avoid the cost, delay and uncertainty of litigation.

It agreed to pay $12.1 million in cash to the government and credit the Army for $3.4 million in unbilled services. Federal officials agreed to pay $2.79 million to the whistleblowers.

Ellie