Lockheed Martin will pay $15.8 million to settle a lawsuit that it overcharged the government for tools used on military aircraft programs.
The Justice Department says the settlement stems from a 2005 case when a former worker from Texas-based Tools and Metals Inc. filed suits against the company for overcharging Lockheed.
The Fort Worth Star-Telegram reports that whistle-blowers Robert Spencer and John Becker will split a $2 million share of the settlement.
Spencer and Becker both filed lawsuits alleging that TMI owner Todd Loftis engaged in price fixing. Loftis was sentenced to seven years in prison for fraud.
The Justice Department said Lockheed acted recklessly by failing to adequately oversee TMI’s charging practices.
Lockheed said it did not engage in inappropriate billing but wanted to close the matter.
Was this article valuable?
Here are more articles you may enjoy.
34,000 PG&E Customers Without Power on California Fire Risk 
For Carriers, AI Can Now Mean Hyper-Personalized Customer Service, Leaders Say 
Adani Enterprises Reaches $275 Million Settlement With Treasury 
The Big Dog Is Off the Tech Porch: State Farm as ‘Next Gen Good Neighbor’ 
Want to stay up to date?
Get the latest insurance news
sent straight to your inbox.