The Justice Department last Thursday said that Boeing [BA] has agreed to pay the government $8.1 million to resolve False Claims Act allegations related to the company’s contracts with the Navy on the V-22 Osprey aircraft.
The settlement covers the period from 2007 through 2018 during which time the government alleges Boeing did not comply with some contractual manufacturing specifications related to composite components at the company’s facility in Ridley Park, Pa. Boeing was supposed to conduct “monthly testing on autoclaves used in the composite cure process but was not in compliance with additional requirements related to the testing,” the government said.
The settlement is a result of whistleblower claims by a former Boeing employee who worked with the composites and autoclave operations on the V-22 tiltrotor program. The whistleblower will receive $1.5 million of the settlement.
“The government expects contractors to adhere to contractual obligations to which they have agreed and for which they have been paid,” Brian Boynton, principal deputy assistant attorney general and head of the DoJ Civil Division, said in a statement. “Today’s settlement demonstrates our commitment to hold accountable contractors who violate obligations and undermine the integrity of the government’s procurement process.”
Boeing and its teammate Bell, which is part of Textron [TXT], manufacture the V-22 for the Defense Department.
“We entered a settlement agreement with the U.S. Department of Justice and the U.S. Navy to resolve certain False Claims Act allegations, without admission of liability,” Boeing said.