City Accepts $5.7 Million to Settle PR Billing Suit
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The City Council voted Tuesday to accept a $5.7-million settlement with the Fleishman-Hillard public relations firm, ending a lawsuit alleging that the company overbilled three city agencies.
The firm agreed to pay $4.5 million in cash to the city and forgive about $1.2 million in outstanding bills for work done.
The council received assurances from the finance chief of the Department of Water and Power and other city officials Tuesday that the management flaws that allowed overbilling to allegedly go on for six years had been corrected.
One manager who was overseeing the contract for the department has left the agency, and other managers face stricter controls in approving payments.
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