SAN FRANCISCO, California — Fremont-based Innodisk USA has agreed to pay $950,000 to settle allegations of violating the False Claims Act related to a Paycheck Protection Program (PPP) loan.
The PPP was established in March 2020 under the Coronavirus Aid, Relief, and Economic Security (CARES) Act to support small businesses during the COVID-19 pandemic. Applicants for a “second-draw” PPP loan had to certify that they, along with affiliates, employed no more than 300 employees and experienced a revenue decrease of over 25 percent. Innodisk USA, a subsidiary of Taiwanese multinational Innodisk Corporation, allegedly obtained a second-draw PPP loan on March 17, 2021, despite not meeting these criteria, according to the United States.
The settlement resolves claims under the False Claims Act’s whistleblower provisions, brought by Blockquote, Inc., which will receive $95,000 from the settlement. The case is titled United States ex rel. Blockquote, Inc. v. Innodisk Corp., USA, 3:24-cv-02949-WHO (N.D. Cal.). The resolution was announced by United States Attorney Craig H. Missakian and SBA General Counsel Wendell Davis and was handled by Assistant U.S. Attorney Savith Iyengar…