SEATTLE — A Seattle company that does data analytics for marijuana companies will have to pay more than $1 million to settle allegations that it improperly received a Small Business Administration Paycheck Protection Program (PPP) loan.
Headset Inc. is on the hook for $1,012,876 after it received a PPP loan in 2021, the U.S. Attorney’s Office for the Western District of Washington announced Monday.
The company received the loan in February 2021 and had it forgiven in August 2021.
In May 2024, Sidesolve LLC filed a lawsuit alleging Headset Inc. was ineligible for the PPP loan due to its work in the marijuana industry, which is illegal under federal law, according to the attorney’s office.
Sidesolve will get 10% for blowing the whistle on Seattle data firm
Sidesolve will receive 10% 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,” officials stated.
Headset did not admit wrongdoing but chose to settle to avoid litigation.
The civil settlement includes the resolution of claims brought under the lawsuit or whistleblower provisions of the False Claims Act.
“Under those provisions, a private party can file an action on behalf of the U.S. and receive a portion of any recovery,” the attorney’s office stated.
The settlement was negotiated for the U.S. by Assistant United States Attorney Matt Waldrop.