Construction company Engineered Structures Inc. agreed to settle a False Claims Act suit alleging fraud under the Paycheck Protection Program, after a whistleblower convinced a federal court that temporary workers should be counted for program eligibility purposes.

Karen Bloomfield and Engineered Structures are finalizing the settlement, which is subject to approval from the US attorney, the parties told the US District Court for the Eastern District of Virginia in a Monday notice. Counsel for the parties didn’t immediately respond to a request for comment.

This announcement came the same day as Judge David J. Novak’s decision to side ...

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