Bollinger Shipyards will pay the US $8.5 million to resolve False Claims Act allegations

By Mark Iandolo | Dec 15, 2015

WASHINGTON (Legal Newsline) – Bollinger Shipyards has agreed to pay the United States $8.5 million and release contract claims, settling a False Claims Act action filed in Louisiana, the Department of Justice announced.

“Those who expect to do business with the government must do so fairly and honestly,” Principal Deputy Assistant Attorney General Benjamin Mizer, head of the Justice Department’s Civil Division, said. “We expect the utmost integrity and reliability from the contractors that design and build equipment that is essential to public safety and our national defense.”

This settlement comes more than a decade after the incident in question started. The U.S. Coast Guard wanted to lengthen its fleet of 110-foot patrol boats to 123 feet back in 2002 and contracted the work. Bollinger became the subcontractor in charge of making sure the boats had enough longitudinal strength to meet performance requirements. The U.S. alleged that Bollinger provided false information about the boats’ strength. Additionally, it alleged that Bollinger failed to follow quality control procedures.

The Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office of the Eastern District of Louisiana handled the case.

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