DOJ orders Lockheed Martin units to pay $70M for improper subcontracting


Two subsidiaries of aerospace giant Lockheed Martin agreed to pay $70 million to settle allegations levied by the Department of Justice (DOJ) of overcharging the Navy for aircraft parts.

Sikorsky Support Services and Derco Aerospace, which were acquired by Lockheed Martin from United Technologies Corp. in 2015, will pay nearly $36.5 million in restitution, the DOJ announced in a settlement agreement Friday.

The case resolved claims brought under the qui tam provision of the False Claims Act by Mary Patzer, a former Derco employee. She will receive nearly $14 million of the settlement total.

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