On December 19, 2014, the Justice Department announced that a subsidiary of defense contractor Lockheed Martin has agreed to pay $27.5 million to resolve allegations that it overbilled the government.
The settlement announced by Acting Assistant Attorney General Joyce R. Branda for the Justice Department’s Civil Division and U.S. Attorney Paul J. Fishman for the District of New Jersey resolved allegations that LMIS, a subsidiary of Lockheed Martin, violated the False Claims Act by knowingly overbilling the government for work performed by LMIS employees. According to the complaint, LMIS allegedly violated the terms of the contracts by using under-qualified employees who were billed to the United States at the rates of more qualified employees. The overbilling allegedly resulted in greater profit for LMIS.
For more information about the False Claims Act, which provides for treble damages and up to 30% of the government’s recovery as a reward to whistleblowers, visit the Firm’s whistleblower page.