By Associated Press
NEW ORLEANS (AP) — Two New Orleans universities, the Roman Catholic Archdiocese of New Orleans and a government contractor are defendants in a whistleblower lawsuit alleging fraud involving more than $100 million in Hurricane Katrina aid.
The 2016 lawsuit was unsealed Wednesday. Federal court records show one defendant, Xavier University, has reached a settlement.
The lawsuit was filed by an employee of the contractor, AECOM. The company denied wrongdoing and vowed to “vigorously defend” the work it did after the catastrophic 2005 storm.
The U.S. Justice Department joined the suit last week. The suit alleges false claims resulted in millions of dollars for projects at Xavier and Dillard universities, and for an archdiocese school.