The city of Chicago has brought a $300 million lawsuit against Redflex Traffic Systems based on the company's bribery contract scandal involving the city's red light cameras.
Specifically, the city has joined a whistleblower lawsuit filed against Reflex last year by the company's former executive vice president who was allegedly involved with the bribery scandal. Details of the suit were unsealed last week, reports the Chicago Tribune. The city fired Redflex as its vendor in 2013.
The suit alleges that John Bills, a now-retired city official who was previously responsible for managing Chicago's red-light camera system, steered $124 million in city contracts to Phoenix-based Redflex in exchange for cash and other personal benefits.
The suit notes that Redflex officials had stated the firm was following the law and the city's ethics rules while operating Chicago's red light cameras.
"Had the City known that these statements were false, the City would have canceled the contracts with Redflex," reads the lawsuit. "The City suffered damages in reliance of Redflex's false statements that it had not engaged in bribery or attempted to bribe any employee of the City."
Karen Finley, Redflex's former CEO, pleaded guilty last month to funneling cash and benefits to Bills in exchange for city of Chicago contracts between 2003 and 2011.
Finley faces up to five years in prison. Her sentencing hearing is scheduled for February 18, 2016.
Bills is also facing federal bribery and fraud charges in connection with the scandal. He has pleaded not guilty to those charges, and his trial is set to begin January 11.