Claris Law Legal Blogging Community

Editor: Mike Bothwell
Profession: Qui Tam Attorney

Category: Settlements and Verdicts

General Dynamics Corp. will pay $4.06 million to the U.S. government to settle allegations of fraudulent billing to the government for parts used in military aircraft by one of its subsidiaries.

The Brooklyn U.S. Attorney's office said that it had reached a settlement with General Dynamics Armament and Technical Products Inc. (a subsidiary of General Dynamics Corp.) in 2003, evolving from a civil lawsuit and has been approved by U.S. District Judge Denis R. Hurley in Brooklyn.
Prosecutors alleged that General Dynamics Armament and Technical Products, between September 2001 and August 2003, inadequately manufactured and/or failed to test parts used in various military aircraft.
General Dynamics stated that the allegations were alleged prior to its acquisition of the Long Island facility in June 2002. After the acquisition of the Long Island facility, General Dynamics began implementing steps to ensure the facility "was complying with customer testing procedures and fulfilling customer requirements." The facility was closed in 2005.
General Dynamics and its subsidiary neither admitted nor denied wrongdoing as part of the agreement.