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Northrop Grumman Agrees to Settle FCA Allegations for $12.5 Million

On June 23, 2010, the FBI’s Los Angeles office announced that Northrop Grumman paid $12.5 million to settle allegations that it knowingly submitted false claims to several government agencies.  Northrop Grumman allegedly supplied the government with untested commercial-grade electrical components which were used in military and space applications.  The components should have been tested to ensure that they would withstand the extreme temperatures inherent to military and space systems.  Allen Davis, a former quality assurance manager, filed the qui tam action in May of 2006 and will receive $2,375,000.

Under the False Claims Act, a private individual with knowledge of fraud committed against the federal government may sue on behalf of the government to recover losses caused by the fraud.  To encourage whistleblowers to come forward, the False Claims Act provides an award of up to 30 percent of the government’s recovery.  The False Claims Act also prohibits employers from retaliating against whistleblowers.

The whistleblower lawyers at The Employment Law Group® law firm have experience protecting whistleblowers and litigating qui tam actions brought under the False Claims Act.  For more information about TELG’s False Claims Act Practice, click here.

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