A settlement has been reached to resolve False Claims Act allegations against Northrop Grumman Systems Corporation.
The allegations arose from a lawsuit that claimed Northrop Grumman Systems Corporation violated the False Claims Act, by overstating the number of hours its employees worked on two battlefield communications contracts with the United States Air Force.
“Contractors that knowingly inflate their bills to the government will face serious consequences,” said Assistant Attorney General Joseph H. Hunt for the Department of Justice’s Civil Division. “This settlement demonstrates, once again, that we will not tolerate those who falsely charge the armed forces or any agency of the United States to illegally profit at the expense of the American taxpayer.”
Reportedly, the Air Force entered into two contracts with Northrop Grumman Systems Corporation for battlefield communications services: the Battlefield Airborne Communications Node contract and the Dynamic Re-tasking Capability contract.
According to the government, allegedly, Northrop Grumman Systems Corporation billed the Air Force for labor hours purportedly incurred between July 1, 2010, and December 31, 2013, by individuals stationed in the Middle East who had not actually worked the hours claimed. In addition, Northrop Grumman Systems Corporation entered into a separate agreement with the Criminal Division of the U.S. Attorney’s Office for the Southern District of California related to these contracts under which it has agreed to forfeit an additional $4.2 million.
Accordingly, Northrop Grumman Systems Corporation will make a payment of $25.8 million which, combined with earlier payments made, will total $27.45 million.
