Northrop Grumman has settled a whistleblower case with the government for $325 million, but the defense contractor doesn't need to get out its checkbook: In a separate case, the federal government agreed to pay Northrop the same amount, the Los Angeles Times reports. The two cases offset each other and “no money is exchanged,” said a Justice Department official.
The electrical engineer at the center of the whistleblower suit sued in 2002, alleging that a Northrop subsidiary knowingly sold the government defective parts. He received $48.7 million in the case--but it was paid by the Treasury, not Northrop. Meanwhile, Northrop came out on top in a 13-year case regarding a missile program the government canceled in 1995.