Federal Contractor Whistleblower Represented by Price Armstrong Helps Recover Over $4 Million
When federal contractors overcharge the government, whistleblowers can play a critical role in holding them accountable. We represented a client who filed a False Claims Act case against Omnicell, Inc.—a medical technology company with federal contracts. In June 2025, that lawsuit resulted in a $4.37 million recovery for taxpayers, thanks to a federal contractor whistleblower represented by our attorneys Graham Cotten and Oscar Price.
Between 2017 and 2023, Omnicell sold and leased medical device hardware and software to the U.S. Department of Veterans Affairs (VA) through a Federal Supply Schedule (FSS) contract. These contracts set strict pricing limits designed to ensure that the government receives fair and consistent rates. However, internal issues in Omnicell’s pricing systems led to the VA being charged more than the contractually agreed prices. While Omnicell occasionally issued credits when overcharges were caught, it failed to implement a systemic fix or identify past customers who had also been overbilled.
That’s where our whistleblower stepped in. In August 2023, our client, a former Omnicell employee, filed a qui tam lawsuit under the False Claims Act in the Eastern District of Washington (Spokane). Represented by Price Armstrong, the whistleblower alleged that Omnicell knowingly failed to provide correct pricing to its federal clients, costing taxpayers millions.
The U.S. Department of Justice and the VA Office of Inspector General investigated the allegations and ultimately intervened in the case. The resulting settlement required Omnicell to pay $4,366,660. The Government awarded the whistleblower a relator’s share of more than $700,000. The whistleblower also recovered on a retaliation claim.
“Veterans who served our country deserve the best health care possible,” said Acting U.S. Attorney Richard R. Barker. “It is important that companies who do business with the VA and the federal government are accurate in how they charge for goods and services.”
This case sends a clear message: federal contractors that cut corners or ignore contract pricing rules face serious consequences—and whistleblowers who expose fraud can be rewarded for their courage.
If you are a federal contractor whistleblower or believe your employer is defrauding the government, Price Armstrong can help you evaluate your case, file a confidential claim, and fight for justice on your behalf.
