Verizon To Pay $93M For Overcharging The Government

You would think that after Verizon was ordered to pay back customers for overcharges last October, that the company would have tidied up its billing procedures. And, you would think the last people they should make that same mistake with is the government. Verizon has been ordered to pay $93.5 million to settle a claim that they overcharged the General Services Administration (GSA) on taxes and surcharges.

Verizon's MCI Communications Services unit held a government contract for voice and data services with GSA , which supports various federal agencies with products and communications. According to the Justice Department, GSA found that Verizon submitted false claims for reimbursement of property taxes, recovery charges, and unallowable surcharges.

"Verizon cooperated closely with the government throughout the process," Peter Lucht, a Verizon spokesman, said in an interview. "It was in the best interest of all parties to settle the matter. The government and Verizon disagreed on whether certain fees could be charged under the contract, so their settlement concludes the efforts by both parties to resolve the dispute amicably."

[via Bloomberg]