Posted on 04/19/2005 3:59:53 PM PDT by BurbankKarl
The politically well-connected public relations firm accused of overbilling Los Angeles taxpayers agreed today to settle a lawsuit by paying $5.74 million to city agencies.
The case against Fleishman-Hillard, an international public relations firm, was filed after city auditors alleged that the firm charged millions of dollars to the Department of Water in "unsubstantiated, unsupported and questionable" billings.
Fleishman-Hillard, based in St. Louis, has been closely associated with many city politicians and Mayor James K. Hahn, as political contributor, a source of executive talent, and a provider of millions of dollars in public relations services.
The deal was finalized today by the DWP board, which voted its approval this afternoon. DWP is due to receive 95% of the proceeds, with the remainder going to the Airport and Harbor commissions.
The settlement is $4.5 million in cash and $1.2 in forgiveness of outstanding bills that had not been paid by the city.
"This settlement is both a substantial legal victory as well as another signal that the city of Los Angeles will not be an easy mark, " said City Attorney Rocky Delgadillo, who filed the lawsuit.
The firm stated it had conducted an extensive internal investigation of Los Angeles office records covering its six-year, $11-million contract with DWP and other city agencies.
(Excerpt) Read more at latimes.com ...
O-gosh, what a surprise..........
Corruption is negotated clean.
Whatever will they think of next?
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