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Tuesday, October 22, 2019

Boeing agrees to $19 million settlement over military billing

By Emily Moore | Nov 2, 2015

WASHINGTON, D.C. (Legal Newsline) -- Boeing will pay $19 million as part of a recent settlement with the U.S. Department of Justice over allegations that it improperly charged the Air Force labor costs for maintenance and repair of C-17 Globemaster aircrafts.

“Defense contractors are required to obey the rules when billing for work performed on government contracts,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said.

“Today’s settlement demonstrates that the Justice Department will ensure that government contractors meet their obligations and charge the government appropriately.”

The suit stemmed from allegations under the whistleblower provision of the False Claims Act made by a former Boeing employee. The allegations state that Boeing knowingly improperly charged the government for time mechanics were on extended breaks and lunch hours.

The C-17 Globemaster aircraft is manufactured and maintained by Boeing for military use for transporting troops and cargo. The alleged improper labor costs occurred during contract work completed at Boeing’s Long Beach Depot Center in Long Beach, Calif.

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