Aerojet Pays $3.3M To Settle False Claims Case

Law360, New York (November 30, 2011, 9:42 PM EST) -- GenCorp Inc. unit Aerojet-General Corp. has paid $3.3 million to settle allegations it fraudulently included unallowable costs in setting rates it charged the U.S., causing the government to overpay for defense contracts, federal prosecutors announced Wednesday.

The government alleged that Aerojet fraudulently included costs associated with GenCorp resisting a 2004 hostile takeover bid by hedge fund Steel Partners and a 2006 proxy battle with activist hedge fund Pirate Capital LLC in calculating its indirect overhead rate proposals submitted to the government for various defense contracts....
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