By Sabela Ojea

AECOM has agreed to pay $11.8 million to the U.S. Department of Justice to resolve claims over allegedly submitting false claims over the effects of Hurricane Katrina on its Louisiana-based educational facilities.

The Dallas-based architecture and engineering firm's supervisors didn't correct disaster assistance applications that included materially false design, damage and replacement eligibility descriptions, according to the government's allegations in the government's complaint.

The Federal Emergency Management Agency provided institutional applicants with public assistance funds for the repair or replacement of facilities damaged by Hurricane Katrina in 2005.

Funding was limited to repairing a damaged facility, unless that cost exceeded half of the facility's replacement cost, in which case full-replacement funding was available.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

October 24, 2023 13:16 ET (17:16 GMT)

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