Whistleblower Gets $490k From Corning’s $5.65m Settlement

Northern, WI 03/09/2013 (avauncer) – Corning Incorporated (NYSE:GLW) has agreed to settle all charges brought forth by the Justice Department. The legislative authority had said last Friday that the company had filed false statements under a contract for laboratory research related products between the with federal agencies  and the Corning’s Life Science’s division.

The contract allotted to the company belongs to a class which mandates a compulsory disclosure of pricing policies & practices. Once disclosed and agreed upon the contractor has to abide by the terms and conditions, put forth at the beginning of the contract, till the end of the contract term.

The US justice department had said last Friday that the statements that the Corning-NY based company filed with General Services Administration who administrators the contract, were falsified. The challenged statements related to sales and discount policies. According to the Justice Department the company failed to disclose the fact that commercial customers were entitled to a higher rate of discount compared to public sector clients.

The irregularity came to surface after Kevin Jones, a former employee at Corning Life Sciences blew the whistle on the glass maker. Jones served as a sales representative at the company will be entitled to a sum of $904,000 out of the settlement proceeds.

In an emailed statement, Dan Collins, spokesman for Corning Inc (NYSE:GLW) said the matter stemmed from a reinterpretation of the contract’s requirement at a later phase of the contract’s life. The company interpreted those requirements differently, at the inception of the contract, said Collins. The company disagrees with the government’s interpretation but decided that “to settle and move on” would be a better option, he added.

Corning Incorporated (NYSE:GLW) shares closed up 5 cents at $12.70.