ROANOKE – HEYtex USA, located in Pulaski, Virginia, has agreed to pay $3 million to resolve allegations that it violated the False Claims Act between January 1, 2013, and December 31, 2018 when it knowingly sold fabrics to the United States military that failed to meet certain required specifications. HEYtex has also entered into an agreement with the Defense Logistics Agency (DLA) to ensure that HEYtex remains in compliance with testing requirements going forward.
HEYtex USA is a worldwide manufacturer of various technical textiles and materials, and its North American headquarters in Southwest Virginia specializes in fabrics and materials produced for the United States military.
In the settlement, the United States alleged HEYtex caused false claims to be submitted in connection with fabrics manufactured for military and personal equipment. Specifically, an employee of HEYtex USA, who later came forward as a whistleblower, brought information regarding falsified test results to the attention of former company management, but the whistleblower was initially ignored.
The employee alleged that on over 100 separate occasions, HEYtex falsely certified that its military-grade fabrics met all requisite performance specifications set by the military when, in fact, the fabrics failed those tests.
“We applaud the courageous efforts of whistleblowers, who put their livelihood on the line to do what is right. Whistleblowers are essential to combatting fraud against the government...
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