August 3, 2000 The Boeing Company
The Boeing Company has agreed to pay up to $54 Million Dollars to settle claims asserted in a qui tam action filed by Brett Roby, a former quality engineer. The allegations of the case were that the company placed defective gears in CH-47D “Chinook” helicopters and then sold them to the United States Army. Boeing used two subcontractors, Litton Precision Gear of Bedford Park Illinois and SPECO Corporation of Springfield, Ohio to manufacture the flight-critical gears for the helicopter. One of the gears, manufactured by Litton, failed in flight, causing an Army Chinook helicopter to crash and burn while on a mission in Honduras in 1988. Five servicemen aboard were killed.
Mr. Roby, the quality engineer who filed the two qui tam lawsuits, which precipitated the settlement, will receive $19 Million Dollars in connection with the case.
See U.S. Dept of Justice Press Release 8/3/00