Navistar Settles Marine Corps Fraud Case For $50M

Law360 (May 27, 2021, 7:42 PM EDT) -- Navistar Defense has agreed to a $50 million settlement to resolve claims it used fraudulent pricing data to drive up the price the U.S. Marine Corps paid for armored vehicle components, the U.S. Department of Justice said Thursday.

The settlement resolves False Claims Act allegations related to a 2010 contract modification to provide upgraded suspension systems for mine-resistant ambush protected vehicles, or MRAPs, where the pricing was supposed to be set based on Navistar's commercial pricing, according to the DOJ's announcement.

The company, a former subsidiary of truck and bus manufacturer Navistar International Corp. now majority-owned by Cerberus Capital Management after a...

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