Army Ads Cost Leo Burnett $15.5 Million

Feds settle whistleblower lawsuit

Tuesday, Jan 6, 2009  |  Updated 1:09 PM CDT
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Army Ads Cost Leo Burnett $15.5 Million

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Chicago-based Leo Burnett will pay $15.5 million as part of a settlemennt in a whistleblower case alleging the company overbilled the U.S. Army in an ad campaign.

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This was an expensive ad campaign for Leo Burnett .

The Chicago-based  company has agreed to pay $15.5 million to settle a federal “whistleblower” lawsuit claiming they overbilled on the U.S. Army on an advertising campaign, according to the U.S. Attorney's office. 

The United State will get a cash payment of $12.1 million and credit the Army $3.4 million in work performed but not billed, according to the settlement announced Tuesday. 

Leo Burnett reportedly had a contract with the Army from 2000-2005 to provide ads for its “Army of One” campaign.  The allegations against the company centered around its internet division and whether or not it had inflated and falsely portrayed hourly rates billed through third-party contractors.

The settlement resolves a lawsuit filed in 2004 by two former Leo Burnett employees.  

The agreement states Leo Burnett does not admit any liability, and it settled to "avoid the expense, delay and uncertainty of litigation."

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