Atlantic Diving Supply (ADS) and its subsidiaries agreed to pay the United States $16 million to settle allegations that they violated the False Claims Act by knowingly conspiring with and causing purported small businesses to submit false claims for payment in connection with fraudulently obtained small business contracts. The government alleged ADS, together with several purported small businesses that it controlled, fraudulently induced the government to award certain small business set-aside contracts by misrepresenting their eligibility as service-disabled veteran-owned and socially or economically disadvantaged businesses. The settlement also resolved allegations that ADS engaged in illegal bid rigging schemes that inflated or distorted prices charged to the government under certain contracts.