Siemens Industry, a subsidiary of Siemens Corp., has agreed to settle over $1 million to resolve breaches of the False Claims Act. Allegedly, the company misrepresented data provided to the Department of Housing and Urban Development (HUD) to encourage housing authorities to implement energy-saving improvements.
The agreement comes as a result of a contract drawn up in 2011 between Siemens Industry and the Hamtramck Housing Commission, an HUD-funded public housing authority located near Detroit, Michigan. Under the contract, Siemens was to install energy-efficient furnaces, water heaters, lighting, and electrical units in two Hamtramck public housing facilities. This initiative was to reduce energy costs and improve living standards in community housing.
However, it emerged that Siemens had apparently manipulated data to always be on the ‘right side’ of its guarantees. This falsified information gave a false sense of cost savings to the HHC, ensuring Siemens faced no accountability for failing to deliver the promised energy savings. Specifically, it could secure approval from the HUD under false pretenses. The plaintiffs in this case highlight these actions, shedding light on the matter.
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