Northrop To Pay $12.5M In False Claims Case

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Los Angeles-based Northrop Grumman agreed to pay the United States $12.5 million to settle allegations that it knowingly submitted false claims to multiple government agencies when it supplied electronic parts for navigation systems for military airplanes, helicopters, submarines and certain equipment used in space, the U.S. Justice Department announced June 23.

The government alleged that Northrop’s Woodland Hills, Calif.-based Navigation Systems Division failed to test certain commercial-grade electronic components to ensure they would function in the extreme temperatures required for military and space use.

Agencies affected by Northrop’s alleged misconduct include the U.S. Navy, Army, Air Force, Defense Logistics Agency, Coast Guard, Forest Service and NASA.

“Northrop Grumman has fully cooperated with the government’s investigation in this issue and is pleased that the matter is now behind us,” Northrop Grumman spokesman Lon Rains said June. 25.