Delaware Company to Pay More Than $3.34 Million to Resolve False Claims Act Allegations Related to Paycheck Protection Program Loan

Press release — Delaware Company to Pay More Than $3.34 Million to Resolve False Claims Act Allegations Related to Paycheck Protection Program Loan, dated 2026-09-01, issued by U.S. Attorney’s Office, District of Delaware.

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WILMINGTON, Del. – Novum Pharmaceutical Research Services of Delaware, Inc. (“Novum”), a Delaware corporation with its principal place of business in Pittsburgh, Pennsylvania, has agreed to pay $3,345,000 to resolve allegations that it improperly obtained a Paycheck Protection Program (“PPP”) loan from the U.S. Small Business Administration (“SBA”) for which it was not eligible. PPP was an emergency loan program established by Congress in March 2020 under the Coronavirus Aid, Relief, and Economic Security Act and administered by the SBA. The program was created to support small businesses and to help them continue to pay employees and meet other business expenses during the COVID-19 pandemic. A second round of loans was authorized in early 2021. To be eligible for these Second Draw PPP loans, a business was required to certify that it had no more than 300 employees, including employees of all domestic and foreign affiliates. Novum applied for and received a $2,000,000 Second Draw PPP loan. In its loan application, Novum certified that, together with its affiliates, it had fewer than 300 employees, as required for eligibility. Novum later applied for—and ultimately received—full forgiveness of the Second Draw loan. However, at the time of its application, Novum and its domestic and foreign affiliates, including its ultimate parent, India-based Lambda Therapeutic Research, Ltd., collectively employed more than 300 individuals. As a result, Novum was not eligible for a Second Draw PPP loan under the SBA’s employee‑based size standard. U.S. Attorney Benjamin L. Wallace announced the settlement. Assistant U.S. Attorney Jacob Laksin handled the case. The 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—known as a relator—can file an action on behalf of the United States and receive a portion of any recovery. In this case, the relator will receive a share of the settlement. Individuals with information about allegations of fraud involving COVID-19 are encouraged to report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form . On April 7, the Department of Justice announced the creation of the National Fraud Enforcement Division (“Fraud Division”). The Fraud Division is investigating and prosecuting those who commit fraud against the American people. The Department’s work to combat fraud supports President Trump’s Task Force to Eliminate Fraud, a whole-of-government effort chaired by Vice President J.D. Vance to eliminate fraud, waste, and abuse within federal benefit programs. A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. A copy of the settlement agreement and agreed-upon statement of facts are attached to this press release. Related court documents and information are located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 24-cv-1381-GBW. The claims resolved by the settlement are allegations only; there has been no determination of liability. Novum Settlement Agreement

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