Earlier this year, the Department of Justice (DOJ) announced it amassed a record $6.8 Billion in fraud and False Claims Act (FCA) recoveries in Fiscal Year 2025. New FCA matters also increased substantially, driven in large part by a significant rise in suits brought by whistleblowers. As part of DOJ’s and whistleblowers’ relentless focus on pursuing claims of fraud committed against the federal government, construction contractors have come under heightened scrutiny. Recently, two Ohio asphalt companies paid a combined $30 Million to settle FCA allegations that they submitted fraudulent testing data for federally funded highway projects. This FCA settlement is an important reminder for construction contractors doing business with the federal government: compliance with statutory, regulatory, and contractual obligations is critical, and taking shortcuts can cost the company far more in the long run than they save in the short term.
The Cases
Kokosing Inc.
The whistleblowers[1]—both engineers employed by the Ohio Department of Transportation (ODOT)—sued construction contractors Kokosing Construction Company, Inc. and Kokosing Materials, Inc. (Kokosing) under the FCA’s qui tam provision. The state of Ohio requires asphalt mix design testing at various stages of an asphalt paving project to ensure the finished asphalt product will be of a minimum satisfactory quality and perform in accordance with expectations after the project is complete. This testing is completed by the...
Connecticut Attorney General (AG) William Tong announced on March 20, 2026, that Connecticut has joined with other states and the federal government to reach a settlement with CVR Management, LLC,...