Nassau Police Settle With LexisNexis Over Alleged Fraud
Nassau County Police have been reimbursed for hundreds of thousands of dollars’ worth of vehicle crash reports resold by the online research database LexisNexis.
Law enforcement agencies generate reports of vehicle crashes that individuals and insurance companies purchase for their claims.
LexisNexis stores these reports and has a deal with agencies to resell the reports for a profit. The database company is supposed to pay a fee every time a report is sold.
A former employee said in a whistleblower lawsuit that LexisNexis had defrauded New York and other states by covering up report sales to avoid paying the fee. New York was out $900,000.
LexisNexis settled with the states, and New York was awarded $1.7 million. Nassau County Police gained one of the state’s larger reimbursements: about $385,000.
In an emailed statement, LexisNexis Risk Solutions says it’s pleased to have reached a resolution of the investigations, saying they had a disagreement over the meaning of contract language regarding when certain payments were due to law enforcement agencies after crash reports were purchased and then resold. Although they disagreed with the interpretation of the contracts by the jurisdictions, ultimately they decided that rather than litigate, they would settle the disagreement in a way that benefited their law enforcement partners. They say it’s not a case about fraud by any LexisNexis entity, and the settlement agreement includes no admission of wrongdoing or liability.