Settlement Filed in Federal Court
Court filings show Harman will pay $11,809,628, including $5,728,034.24 in restitution. The settlement stems from a False Claims Act case filed by whistleblower Jesrel Mitre, a Harman customs compliance and logistics specialist who said he uncovered the duty-avoidance problem shortly after being assigned to heat-sink import operations in 2018.
Mitre’s September 2020 complaint alleged that the heat sinks did not qualify for exemptions under a 2011 U.S. Department of Commerce antidumping and countervailing duty order covering a wide range of Chinese aluminum extrusions. Although some finished heat sinks are exempt, Mitre maintained that Harman’s products fell squarely within the tariff-covered category.
Mitre said he urged company leadership to disclose the issue to U.S. Customs but claimed no action was taken. Under the settlement, he will receive $2,302,877.46 as his relator share.
Harman Denies Wrongdoing as Case Closes
Despite paying the multimillion-dollar settlement, Harman continues to deny the allegations, according to the agreement. The company did not respond to requests for comment.
