A settlement has been reached to resolve False Claims Act allegations against Lockheed Martin Corporation.
The allegations arose from a lawsuit that claimed Lockheed Martin Corporation violated the civil False Claims Act by providing defective communications systems for the United States Coast Guard’s National Security Cutters.
According to the government, Lockheed allegedly supplied a radio frequency distribution system for the cutters that did not meet the requirement of transmitting and receiving several different radio signals at the same time without undue interference. The Coast Guard has taken delivery of the first six Cutters and three additional Cutters are under construction.
Reportedly, Lockheed has agreed to pay $2.2 million, and to provide the Coast Guard with repairs to the Radio Frequency Distribution System on the nine Cutters at no charge. The repairs are valued at $2.2 million.
“This office remains committed to fighting fraud and false claims against the federal government,” said Acting U.S. Attorney Tse. “It is essential that the communications systems on the Coast Guard’s National Security Cutters work properly. I am pleased that Lockheed has agreed to repair the systems so that they fully function to support the Coast Guard’s important mission.”
A whistleblower, a former member of Lockheed’s engineering staff working on the Coast Guard’s National Security Cutters, will receive $990,000 out of the $4.4 million settlement.
