Tetra Tech EC Inc. Agrees to Pay $57M to Settle False Claims Act Allegations for Falsifying Soil Test Results at the Hunters Point Naval Shipyard in San Francis

Tetra Tech EC Inc., a subsidiary of Tetra Tech, Inc., has agreed to pay $57 million to resolve False Claims Act allegations that it fabricated soil test results at the Hunters Point Naval Shipyard in San Francisco. The government alleged that between 2003 and 2014, Tetra Tech instructed technicians to discard contaminated soil samples and replace them with clean soil to meet remediation standards. The company also allegedly manipulated scan results in its database to falsify technician and timing records. The settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of California, where the government claimed Tetra Tech prioritized profits over safety and compliance. The allegations remain unproven as part of the settlement.

The settlement stems from a qui tam lawsuit filed under the False Claims Act, which allows private parties to sue on behalf of the government. The case, captioned *United States ex rel. Jahr, et al. v. Tetra Tech EC, Inc.*, was brought by former employees and contractors, including Arthur R. Jahr III, Elbert G. Bowers, and others. The whistleblowers will receive approximately $11.97 million of the settlement. The resolution reflects a coordinated effort involving the Justice Department’s Civil Division, the U.S. Attorney’s Office for the Northern District of California, and multiple federal agencies, including the Naval Criminal Investigative Service and the Defense Criminal Investigative Service.

Government officials emphasized the importance of accountability in federal contracts, particularly for projects involving public health and safety. Assistant Attorney General Brett A. Shumate stated that the settlement demonstrates the Justice Department’s commitment to holding contractors accountable for dishonest practices. U.S. Attorney Craig H. Missakian highlighted the significance of the Hunters Point Naval Shipyard project, which has required decades of federal investment to ensure safety for public use. Acting Special Agent in Charge Brian Merkal of the NCIS Economic Crimes Field Office noted that Tetra Tech’s actions potentially endangered public health by prioritizing financial gains over its contractual duties.

The settlement follows broader federal efforts to combat fraud, waste, and abuse in government programs, including the launch of the Task Force to Eliminate Fraud and the National Fraud Enforcement Division. The Justice Department’s Civil Division has recovered billions through False Claims Act enforcement, supporting these initiatives. In a separate but related case, the U.S. also recovered $40 million under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) in a July 2, 2025 settlement. The claims resolved by these settlements are allegations only, and no determination of liability has been made.