September 29, 1995 CSX Transportation Inc.
CSX Transportation Inc. has agreed to pay $5.9 Million Dollars to settle claims asserted in a qui tam action filed by A. David Nelson, a former employee. The allegations of the case were that CSZX overcharged the government millions of dollars for railroad crossing signals installed under a federal safety program. The allegations included claims that the company inflated labor hours for wiring signal housings, and overcharged the government for certain parts by selling them at a profit to third-party venders, repurchasing them at a higher price, and them selling them to the government for the higher price.
As part of the settlement Mr. Nelson will receive over $1.1 Million Dollars for having filed the qui tam case.
See U.S. Dept of Justice Press Release 9/29/95