NetNews Usenet Archive 1992 #18/NN_1992_18.iso/spool/misc/activism/progress/5765

Text File | 1992-08-12 | 1.8 KB | 42 lines

Newsgroups: misc.activism.progressive
Path: sparky!uunet!gatech!ukma!mont!pencil.cs.missouri.edu!rich
From: [e-mail]
Subject: McDonnell Douglas Pays U.S. $1 Million to Settle Dispute
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Date: Thu, 13 Aug 1992 18:49:15 GMT
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Here is a press release from the U.S. Justice Department.

  McDonnell Douglas Pays U.S. $1 Million to Settle Dispute
 To: National and Business desks, Defense Writer
 Contact: U.S. Department of Justice, 202-514-2007

   WASHINGTON, Aug. 11 /U.S. Newswire/ -- The Department of Justice
announced today that McDonnell Douglas Missile Systems will pay the
United States $1 million to resolve claims it failed to disclose all
information and also misrepresented other costs in negotiating three
contracts with the Navy.
   Assistant Attorney General Stuart M. Gerson, head of the Civil
Division, said the government's claims stemmed from three contracts
the Navy negotiated with McDonnell Douglas from 1985 through 1987.
   In those negotiations, McDonnell Douglas told the Navy it planned
to manufacture in-house air-launch wing kits for the Harpoon missile.
The company, in fact, purchased the kits.
   The government also said McDonnell Douglas falsely represented the
distribution of engineering labor hours between general engineering
and design engineering and made other misrepresentations about the
cost of contractor furnished equipment.
   The settlement resolves claims the United States could have
brought against McDonnell Douglas under the False Claims Act and
Truth in Negotiations Act.
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