Defense contractor Lockheed Martin has settled two whistleblower suits under the False Claims Act claiming that it defrauded the federal government by overcharging it for tools used on military aircraft. The settlement was for $15.9 million.  The claim was that Lockheed Martin knowingly passed on to the government overcharges from a subcontractor. The whistleblowers will receive $2 million of the settlement.

Source: Bloomberg Business News

The federal False Claims Act allows whistleblowers to bring suit on behalf of the U.S. government to recover monies that the government has been defrauded of by contractors or suppliers. The whistleblower is permitted under the False Claims Act to keep 15-25% of the monies recovered.

If you are aware of a supplier or contractor defrauding the federal government, contact Lexington, Kentucky whistleblower lawyer Robert Abell at 859-254-7076.