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Gallup settles with US for $10.5m

WASHINGTON — The Justice Department said Monday that the Gallup Organization has agreed to pay $10.5 million to settle allegations the polling and market research firm improperly inflated prices for proposed contracts with the US Mint and the State Department.

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

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In January, the former 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 brought by a fired Gallup employee, alleging that Gallup filed false claims on contracts with the Mint, State Department, Office of Personnel Management, and FEMA.

In a statement, Gallup said that by ending this civil action with no admission of wrongdoing, it can avoid further distractions and focus on serving its customers.

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