Justice Department settles for $5 million with Lockheed Martin

By Mark Iandolo | Mar 1, 2016

LOUISVILLE, Kentucky (Legal Newsline) — The Department of Justice has announced Lockheed Martin Corporation and subsidiaries Lockheed Martin Energy Systems and Lockheed Martin Utility Services (collectively, Lockheed Martin) will pay $5 million over allegations they violated the Resource Conservation and Recovery Act (RCRA).

“We depend on the private sector to provide services critical to the government’s energy needs and to provide those services by means that are environmentally sound,” said principal deputy assistant attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “As the settlement announced demonstrates, the department will vigorously pursue all appropriate remedies to ensure that those who provide these vital services do so honestly and safely and in accordance with the law.”

According to the allegations, Lockheed Martin did not identify and report hazardous waste produced and stored in its facilities, an act which violated the RCRA–the statute that established management principles for hazardous wastes. This conduct resulted in false allegations for Lockheed contracts with the Department of Energy, the Justice Department alleged.

“This settlement reflects our commitment to pursuing companies that violate the hazardous waste laws, and to securing a fair recovery of civil penalties for the people of the United States,” said assistant attorney general John Cruden, head of the Justice Department’s Environment and Natural Resources Division. “The $1 million in RCRA civil penalties that the defendants are paying under this settlement is significant and is appropriate for the violations the United States has alleged.”

The $4 million of the settlement funds–paid by Lockheed Martin–will resolve the False Claims Act violations, while $1 million–$500,000 from each subsidiary–will go toward RCRA civil penalties.

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