February 26, 1996 Philips Electronics
Philips Electronics North American Corporation has agreed to pay over $65 Million Dollars to settle claims that it sold improperly tested capacitors and resistors to the government for a number of military and aerospace programs. Resistors and Capacitors are key electronic components in a number of military and aerospace systems, including aircraft, missiles, satellites and radar systems. Between 1983 and 1992, Philips sold millions of dollars worth of resistors and capacitors, many of which were required to be manufactured and tested in accordance with detailed military specifications. The allegations asserted against Philips were that it falsified test reports for resistors and capacitors and failed to report when they had failed tests.
The government announced that the $65 Million Dollar settlement resolves all associated claims which could have been brought under the False Claims Act.
See U.S. Dept of Justice Press Release 2/26/96