Boeing’s Insitu to pay $25M to settle U.S. complaint over parts for military drones

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“Taxpayers deserve to get what they paid for — especially in significant no-bid military contracts. Cases such as this one should be seen as a warning to defense contractors that false claims have no place in military purchasing,” said U.S. Attorney Brian Moran.

Meanwhile, Bryan D. Denny, special agent in charge of the Defense Criminal Investigative Service, said defense contractors are required to obey strict standards when proposing cost and pricing data for work to be performed on government contracts.

Denny said, “The pursuit and favorable settlement of this civil litigation is yet another example of our agents and law enforcement partners working together to uncover fraudulent activity and protect taxpayers’ dollars entrusted to the DoD.”

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The settlements resolve allegations that were included in a federal case filed by D.R. O’Hara, a former executive who dealt with pricing for Boeing and Insitu. 

The lawsuit of O’Hara was filed under the whistleblower provisions of the False Claims Act, which allow private individuals to sue on behalf of the government for false claims and share in the recovery of funds.