Updates to our Terms of Use

We are updating our Terms of Use. Please carefully review the updated Terms before proceeding to our website.

Sunday, May 19, 2024 | Back issues
Courthouse News Service Courthouse News Service

U.S. Gets $16M Refund for Overpriced Jet Tools

(CN) - Lockheed Martin will pay $15.85 million to settle claims that it overcharged the government for tools used on fighter jets, the Justice Department said Friday.

The Bethesda, Md.,-based company is one of the world's largest defense contractors.

Prosecutors said Lockheed Martin bought overpriced military aircraft tools from a subcontractor between 1998 and 2005, and that Lockheed Martin passed these costs on to the United States. The perishable tools are used on F-22 and F-35 fighter jets, among other aircraft.

A former president of the Tools & Metals subcontractor, Todd Loftis, pleaded guilty in 2005 and was sentenced to seven years in prison in connection for the overpricing scheme.

In a subsequent civil suit, the United States claimed that Lockheed Martin violated the False Claims Act by not adequately overseeing its subcontractor's pricing. Two whistle-blowers, Robert Spencer and John Becker, will split a $2 million share of the government's recovery. Their suits were consolidated in Dallas federal court.

Categories / Uncategorized

Subscribe to Closing Arguments

Sign up for new weekly newsletter Closing Arguments to get the latest about ongoing trials, major litigation and hot cases and rulings in courthouses around the U.S. and the world.