Boeing Agrees to Pay U.S. $25 Million in Qui Tam Settlement

Monday, 17 August 2009 18:12 administrator
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On August 13, 2009 the Department of Justice (DOJ) announced a $25 million dollar settlement agreement with Boeing related to a qui tam (whistleblower) lawsuit originally filed by two former Boeing employees.  The suit alleged that Boeing installed defective insulation blankets in U.S. Air Force KC-10 aerial refueling aircraft while performing depot maintenance.  The DOJ press release also noted that "Auditors found that Boeing inflated estimates of the number of hours needed to perform the blanket kit work and charged an excessive hourly rate for the work."
 
The relators (whistleblowers) will share a bounty of $2.6 million, according to the announcement, which can be found here.