US Seeks $10M Judgment For Lockheed Tool Payments

Law360, New York (January 21, 2011, 3:33 PM EST) -- The U.S. government has asked for summary judgment in a False Claims Act suit against Lockheed Martin Corp., saying the company improperly charged it for $10 million of tools purchased from a supplier under an illegitimate contract.

The U.S. seeks to hold Lockheed liable on the grounds that the company's cost-plus-percentage-of-cost (CPPC) contract with supplier Tools & Metals Inc. violates federal rules if those costs are later charged to the government, according to the motion filed Thursday in the U.S. District Court for the Northern District...
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