Seattle data analytics company to pay more than $1 million to resolve claims that it improperly received a COVID Paycheck Protection Program (PPP) loan

Seattle - A Seattle data analysis company has agreed to pay $1,012,876 to resolve allegations it improperly received a Small Business Administration Paycheck Protection Program (PPP) loan in 2021, announced First Assistant U.S. Attorney Charles Neil Floyd. Headset Inc. received a PPP loan in February 2021 and had the loan forgiven in August 2021. In May 2024, Sidesolve LLC filed a qui tam lawsuit alleging Headset Inc. was ineligible for the PPP loan due to its work in the marijuana industry, an industry which is illegal under federal law. Sidesolve, as the relator in this case will receive ten percent of the total Headset pays to the government, as well as $20,000 for attorney fees and costs.

Under the terms of the settlement, Headset paid $100,000 of the settlement within 30 days of when the settlement was signed in early August 2026 and will pay the remaining $900,000+ over four years, concluding in August 2030.

Headset does not admit wrongdoing, but in order to avoid the risks of litigation is choosing to resolve this matter with the monetary payments.

This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery.

The settlement was negotiated for the United States by Assistant United States Attorney Matt Waldrop.