Business
General Dynamics settles fraud lawsuit
01:00 AM EDT on Tuesday, August 19, 2008
General Dynamics Corp., the parent company of the Electric Boat shipyard in North Kingstown and Groton, Conn., has agreed to pay $4 million to settle a lawsuit claiming a unit, now closed, fraudulently billed the government for aircraft parts that were defective.
U.S. District Court Judge Denis Hurley, in Central Islip, N.Y., approved the settlement yesterday. General Dynamics, based in Falls Church, Va., didn’t admit or deny any wrongdoing, according to court filings.
The government alleged that from September 2001 to August 2003 the division, General Dynamics Armament and Technical Products, defectively manufactured or failed to test parts used in aircraft such as the C-141 transport plane and submarines.
“Fraudulent practices that could compromise the integrity and reliability of equipment used by the men and women of our nation’s armed services is inexcusable,” Brooklyn U.S. Attorney Benton Campbell said in a statement.
The Glen Cove, N.Y.-based unit, which closed in 2004, failed to properly make or test components used in the Los Angeles and Trident Class submarines, the government claimed. The unit billed the Navy for parts while knowing the equipment didn’t meet military specifications, according to the United States.
General Dynamics, the second-largest shipbuilder for the Navy after Northrop Grumman Corp., had bought the unit with its June 2002 acquisition of Advanced Technical Products and added it to its combat-systems business.
The investigation began after former employees at the facility filed a lawsuit under the federal False Claims Act in 2003, according to Campbell’s office.
General Dynamics cooperated fully with the government in its investigation, spokesman Robert Doolittle said.
“The activity that resulted in this lawsuit is alleged to have begun in 2001, pre-dating General Dynamics’ acquisition,” Doolittle said in an e-mailed statement. After the purchase, General Dynamics “began implementing steps to ensure that the company was complying with customer testing procedures and fulfilling customer requirements.”
|
More business stories
New England economic forecast says R.I. will continue to decline
New England economic forecast says R.I. will continue to decline
Most Viewed Yesterday
The hunt for Stephen Saccoccia’s hidden assets
Vehicle fatalities climb in R.I.
Suspect shot during struggle with undercover officer
Patriots journal: Belichick says Moss is smartest receiver he’s seen
Most active surveys
What's your favorite breakfast/lunch place?
Are the Yankees on the brink of another dynasty?
React to Carcieri's veto of R.I.'s first saltwater fishing license
Will you allow your children to be vaccinated against swine flu? Why or why not?
Is it a bad thing or a good thing that prostitution is legal in Rhode Island, indoors?
Most e-mailed in the last 24 hours
Reader Reaction










You must be logged in to contribute. Log in | Register Now!
You are logged in as screenname | Log Out
You are logged in, but do not have a "screen" name. Create a Screen Name