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Northrop Settles Whistleblower Case for $325M

No money will change hands after firm, feds settle separate case

By Matt Cantor,  Newser Staff

Posted Apr 3, 2009 9:43 AM CDT
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(Newser) – 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.

The Global Hawk, a version of the Air Force's top-of-the-line unmanned spyplane built by Northrop Grumman Corp., is unveiled at Edwards Air Force Base, Calif., in January.
The Global Hawk, a version of the Air Force's top-of-the-line unmanned spyplane built by Northrop Grumman Corp., is unveiled at Edwards Air Force Base, Calif., in January.   (AP Photo/Reed Saxon)
This photo released by Northrop Grumman shows an unmanned aircraft in flight from Palmdale, Calif., to Edwards Air Force Base.
This photo released by Northrop Grumman shows an unmanned aircraft in flight from Palmdale, Calif., to Edwards Air Force Base.   (AP Photo/Northrop Grumman, Bobbi Zapka)
In this Feb. 15, 2008 file photo, a contractor is silhouetted while assembling model planes in the exhibition booth of Northrop Grumman at the site of the Singapore Airshow,
In this Feb. 15, 2008 file photo, a contractor is silhouetted while assembling model planes in the exhibition booth of Northrop Grumman at the site of the Singapore Airshow,   (AP Photo/Wong Maye-E)
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COMMENTS
Showing 1 of 1 comment
bewilderbeast
Sep 5, 2009 10:05 AM CDT
Who runs what in the USA? It seems it's still the giant corporates that rule the roost. Who will stand up to them and fight to protect the tax dollar from their thieving hands?

More on the whistleblower's win
Wall Street Journal

 
Northrop Grumman • lawsuit • whistleblower • defense contractors • TRW

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