October 30, 2014

Defense Contractor Northrop Grumman Accused of False Claim Act Violations

by Sven Magnussen

     Todd Donaldson, a plant manager of Northop Grumman, has filed a lawsuit on behalf of the United States accusing the defense contractor of filing false claims against the U.S. Treasury after falsifying compliance tests on its LN-100 Inertial Navigation System, Global Positioning System (INS/GPS) units.

     The complaint was filed in 2012 under seal and was unsealed by order of the court after the U.S. Department of Justice investigated and declined to intervene in the case. Mr. Donaldson, on behalf of the United States, will prosecute the case to recover funds illegally claimed by Northrop Grumman, if any, and request the court order fines to be paid by the defense contractor for filing false claims with the United States. If the matter is settled before trial, the United States recovers funds improperly claimed by Northop Grumman, fines, and interest. The relator, Mr. Donaldson, is entitled to claim a portion of recovery, fines and interest of up to 30 percent of the amount recovered. Moreover, Mr. Donaldson will be entitled to reimbursement from Northrop Grumman for attorneys fees and the cost of the suit.

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