Kessenick Gamma attorneys represented the whistleblower in a False Claims Act case against Innodisk USA, a Fremont-based subsidiary of Innodisk Corporation, a multinational Taiwanese manufacturer of industrial flash and DRAM memory products. The whistleblower alleged that Innodisk USA applied for and obtained a second-draw Paycheck Protection Program (PPP) loan in March 2021 despite being ineligible for it. Congress created the PPP program in 2020 to provide forgivable loans to small businesses struggling to make payroll during the COVID-19 pandemic.
The whistleblower alleged that Innodisk USA was ineligible for the PPP loan because the company exceeded the program’s 300-employee size limit when its parent company and affiliates were counted and had not experienced the required reduction in gross receipts. The whistleblower further alleged that Innodisk USA sought and obtained forgiveness of the loan despite knowing it was not eligible. The U.S. Attorney’s Office for the Northern District of California announced the $950,000 settlement on May 4, 2026. The firm’s client Blockquote, Inc., received a whistleblower award of $95,000.
