Southwick company settles whistleblower lawsuit for more than $2 million
Kokusai Denki, formerly Hitachi Kokusai Electric Comark, settled a lawsuit for over $2 million after a whistleblower alleged they improperly obtained a PPP loan.Summary
A Southwick company, Kokusai Denki Electric America, Inc. (formerly Hitachi Kokusai Electric Comark, LLC), has agreed to pay $2,092,371 to resolve allegations of violating the False Claims Act related to a Paycheck Protection Program (PPP) loan. The lawsuit was initiated by whistleblower Daniel Foster, who alleged the company misrepresented its employee count to qualify for a “Second Draw PPP loan” in April 2025. Comark initially certified it had 67 employees, but this figure excluded employees at affiliate companies, allowing them to fall under the 300-employee threshold for eligibility. The company received a $1,342,232 loan and later sought full forgiveness, but it was later determined they did not qualify due to having over 300 employees when including affiliate staff. The settlement acknowledges Comark’s cooperation with the Department of Justice. Foster will receive 10% of the settlement, totaling $8,516, for his role in bringing the violation to light. The case highlights the government’s efforts to ensure proper use of funds allocated through the CARES Act and PPP.
(Source：Masslive)