F-H pays $4.5m to settle LA suit

LOS ANGELES, CA: Fleishman-Hillard has ended a multi-million-dollar overbilling lawsuit, brought by the city of Los Angeles, with a $5.7m (£3m) settlement.

It has agreed to pay $4.5m in cash and cancel an additional $1.2m of outstanding bills.

But the closure of the civil suit is not the end of the controversy. F-H agreed to the settlement because it had 'failed to meet our own standards', it said, adding that it helped avoid costly litigation and allowed the firm to begin repairing its reputation.

The suit alleged that the firm submitted inflated or fraudulent invoices between 1999 and 2004 on contracts for the Department of Water and Power, the Harbor Department, and Los Angeles World Airports.

Criminal investigations are still in progress.

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