Lockheed Can't Escape FCA Suit Over Lowballed Estimates

Law360, New York (January 21, 2014, 5:10 PM EST) -- A California federal judge Friday refused to toss a False Claims Act suit alleging Lockheed Martin Corp. purposefully lowballed estimates for a U.S. Air Force contract, finding a genuine issue of material fact with respect to the relator’s claims.

In denying Lockheed's motion for summary judgment, District Judge Beverly Reid O’Connell said former Lockheed engineer Nyle Hooper’s claims that the company submitted fraudulently underestimated proposals to the Air Force and then fired him in retaliation for his investigation of the fraud could be valid and that...
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