TRENTON – Legal professional Normal Gurbir S. Grewal introduced at present a settlement with LexisNexis that resolves allegations LexisNexis underpaid legislation enforcement in New Jersey and elsewhere in reference to the acquisition and resale of vehicle crash studies. The settlement is with three Lexis Nexis entities: LexisNexis Danger Options, Inc., LexisNexis Claims Options, Inc., and LexisNexis Coplogic Options, Inc.
Below contracts it has with legislation enforcement companies in New Jersey and different jurisdictions, LexisNexis has agreed to pay sure charges in return for acquiring entry to studies on vehicle crashes, which it then resells to insurance coverage firms and others.
A cooperative investigation carried out by the states of New Jersey, New York, Illinois, Massachusetts and Tennessee, in addition to the Metropolis of Baltimore, centered on LexisNexis’s crash report gross sales actions from 2012 by Could 2019. The investigation discovered that, throughout that interval, LexisNexis paid legislation enforcement companies just for the first time it a offered crash report, however did not report and pay for every subsequent transaction wherein it resold the identical report, as required by its contracts. Consequently, LexisNexis did not pay legislation enforcement companies in New Jersey and elsewhere charges they had been legally entitled to obtain.
As a part of the settlement, LexisNexis can pay the charges it beforehand evaded, and can discontinue its fraudulent resale practices.
“Below this settlement, New Jersey will recuperate funds that ought to have been accessible to legislation enforcement, and LexisNexis will cease a apply that diverted this funding to the corporate’s personal pockets,” stated Legal professional Normal Grewal.
The underreporting of gross sales and underpayment of contractual charges by LexisNexis violated New Jersey’s False Claims Act, in addition to comparable false claims statutes within the different collaborating jurisdictions.
Below phrases of the settlement, LexisNexis should pay a complete of roughly $5.eight million to the collaborating jurisdictions. Together with authorized charges, New Jersey’s share of the settlement is roughly $195,000, based mostly on the variety of false claims submitted to New Jersey legislation enforcement.
The settlement introduced at present and the multi-state investigation that led to it resulted from a qui tam or whistleblower lawsuit filed in federal court docket in Florida. The relator within the federal lawsuit, a former LexisNexis worker, will obtain roughly $1.1 million for bringing the corporate’s misconduct to gentle.
Deputy Legal professional Normal Zachary N. Klein from the Division of Regulation’s Authorities and Healthcare Fraud Part and Assistant Legal professional Normal Jeremy Hollander from the Affirmative Civil Enforcement Observe Group represented the State on this matter.