A former Northrop Grumman [NOC] employee who filed suit against the company in 2006 charging fraud said on Wednesday that the company has agreed to a $12.5 million settlement in the matter.
Allen Davis, who was a company manager in Northrop Grumman’s Salt Lake City, Utah, plant, filed the qui tam lawsuit against the company in federal district court in Los Angeles. An investigation by the federal government found that Northrop Grumman had failed to test certain electronic components the company sold to the military for use in navigation systems in planes, helicopters and submarines, Phillips & Cohen, Davis’ lawyers said.
In a statement released by Northrop Grumman the company said it “has fully cooperated with the government’s investigation in this issue and is pleased that the matter is now behind it.”