Submitted by Diane Farsetta on
Fleishman-Hillard "agreed to pay $5.7 million to settle a lawsuit" brought against it by the city of Los Angeles, which claimed the firm "defrauded city departments by inflating monthly bills." The firm will pay $5.5 million to the Department of Water and Power, the main contract in question, with the remainder going to city agencies "that oversee the airports, harbor and visitors bureau." Fleishman-Hillard wanted to avoid "damage to its reputation and business in the event of a trial." An internal memo obtained by PR Week stated, "This is a significant payment, substantially more than the amount of questioned billing, but our firm's reputation for honesty and integrity is a vital business asset."
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