March 13, 2000 Northrop Grumman
Northrop Grumman has agreed to pay $750,000 to settle claims asserted in a qui tam action filed by two former employees. Under the Joint Stars (JSTARS) program. Grumman had entered a contract with the Air Force to convert used Boeing-built commercial cargo planes to carry military aircraft. The contract required Grumman to calibrate ovens which it used in manufacturing new aluminum replacement parts which were to be used in the conversions, in order to heat-treat the parts for strength and flexibility. The allegations of the qui tam case were that Grumman failed to calibrate and properly maintain the ovens.
As part of the settlement, the former employees who filed the qui tam action will receive $180,000 for having filed the case.
See U.S. Dept of Justice Press Release 3/13/00