Lockheed to pay $2 million to settle lawsuit

Tuesday, January 25, 2011

Lockheed Martin agreed Monday to pay $2 million to resolve allegations that the company submitted false claims on a U.S. government contract for that amount, according to a settlement document.

The allegations were made in a whistleblower lawsuit accusing Bethesda-based Lockheed of violating the False Claims Act regarding its work on the Naval Oceanographic Office Major Shared Resource Center in Mississippi.

The suit, filed in federal court in Mississippi, alleged that U.S. government employees conspired with Lockheed and McLean-based SAIC to ensure they won the 2004 contract. SAIC, also a defendant in the case, was paid $115 million under the contract, of which $2 million was paid to Lockheed.

"Companies that do business with the federal government and get paid by the taxpayers must act fairly and comply with the law," Tony West, assistant attorney general for the Justice Department's civil division, said in a statement.

Representatives of Lockheed and SAIC did not immediately return messages seeking comment.

The suit was filed by David Magee, a former employee of the Naval Oceanographic Major Shared Resource Center. He will receive $560,000 of the settlement.

- Bloomberg News

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