Lockheed To Pay US $15.8M To End Overcharging Claims

Law360, New York (March 23, 2012, 1:50 PM EDT) -- Lockheed Martin Corp. will pay $15.8 million to the U.S. government and two whistleblowers to resolve allegations in Texas federal court that it recklessly passed on a supplier's inflated costs for tools used on military aircraft, the government said Friday.

The defense contractor stood accused of being reckless in its oversight of subcontractor Tools & Metals Inc. and mishandling information revealing TMI's charging practices. TMI's former president and CEO, Todd Loftis, was sentenced to seven years in prison over the scheme.

“It is troubling that a...
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