Verint Targeted in Federal Fraud Probe
Customer engagement platform may not have done the work it was paid to do.
June 15, 2022
In connection with litigation related to trademark infringement and allegations of unfair competition, Verint Systems (VRNT), a customer engagement solutions provider, is now under investigation for possibly defrauding the federal government. Though it hasn’t disclosed a date, Verint says it has been “informed” the U.S. Attorney’s Office for the Eastern District of Michigan’s Civil Division for allegedly failing to provide the federal government the services described in certain government contracts.
Verint received a Civil Investigation Demand (CID)— on or about February 2022 based on disclosures related to the aforementioned litigation— in connection with the investigation and has already responded. Verint suggests the U.S. The Attorney's Office is investigating whether the company violated the False Claims Act, the federal government’s primary weapon for combating fraud.
Verint’s latest annual report indicates the claim likely arose as the result of a whistleblower whose allegations remain under seal.
The company says it has not yet determined there were any deficiencies in the company’s performance of the government contracts.
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