Gallup settles government allegations for $10.5 million

The operations headquarters of the Gallup organization as seen on June 7, 2012 in Omaha, Neb. AP Photo/The Christian Science Monitor/Melanie Stetson Freeman

WASHINGTON (AP) The Justice Department says the Gallup Organization has agreed to pay $10.5 million to settle allegations that the polling and market research firm improperly inflated prices for proposed contracts with the U.S. Mint and State Department.

The settlement also resolves allegations that Gallup engaged in improper employment negotiations with an official from the Federal Emergency Management Agency in order to obtain a FEMA subcontract at an inflated price.

In January, the former FEMA official, Timothy W. Cannon, pleaded guilty to negotiating a job for himself at the Gallup Organization while supervising the firm's FEMA contract.

Cannon's conduct came to light in a lawsuit a fired Gallup employee brought alleging that Gallup filed false claims on contracts with the U.S. Mint, the State Department, FEMA and the Office of Personnel Management.

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