Northrop Grumman Pays $325 Million To Settle Whistleblower Case | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Recent Daily Episodes

Episode Date

AMA Drone Report

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday

Airborne-Thursday

Airborne-Friday

Airborne On ANN

ADR 02.20.17

Airborne 02.20.17

Airborne 02.21.17

Airborne 02.22.17

Airborne 02.23.17

Airborne 02.17.17

Airborne-HD On YouTube

ADR 02.20.17

Airborne 02.20.17

Airborne 02.21.17

Airborne 02.22.17

Airborne 02.23.17

Airborne 02.17.17

Sat, Apr 04, 2009

Northrop Grumman Pays $325 Million To Settle Whistleblower Case

Scientist Exposed Faulty Military Satellite Parts

A company's efforts to stop a scientist from revealing his research findings about faulty electronic components the company sold to the government for military and intelligence-gathering satellites were the basis for a whistleblower lawsuit that Northrop Grumman Corp. settled this week, for a record sum of $325 million.

Today's settlement is the largest one ever paid by a defense contractor in a "qui tam" (whistleblower) case and the second largest settlement ever paid involving defense contractor fraud. The suit was filed against the former TRW Inc, which was acquired by Northrop Grumman in 2002.

The whistleblower, Robert Ferro, will be awarded $48.7 million for his work and the work of his attorneys on the case. The False Claims Act requires the government to reward whistleblowers 15 percent to 25 percent of the amount the government recovers as a result of a qui tam case.

The lawsuit -- joined by the government and made public Thursday -- alleged that TRW, which Northrop Grumman acquired in 2002, sold to the government components known as "heterojunction bipolar transistors," or "HBTs," that TRW knew were likely to fail in government satellites.

The qui tam lawsuit says a government satellite "experienced critical failures" while in orbit in 2001, but at that time the government didn't know that TRW had long been aware that failures of its components were likely.

Ferro claimed research done in 1995 demonstrated the parts would fail if placed in satellites, but TRW didn't inform the government of this before or after the problem occurred. Several government programs delayed launch of their satellites to determine the cause of the problems with the satellite in space. Those programs eventually replaced the HBTs in their satellites.

"TRW deliberately suppressed Robert Ferro's findings and sold the components to the government knowing that those parts were likely to fail," said Eric R. Havian, a San Francisco attorney whose firm, Phillips & Cohen LLP, represents Ferro. "Even after a satellite in space experienced serious anomalies, TRW still refused to reveal the problems found earlier with the components and had the gall to charge the government millions to investigate what went wrong with the satellite."

TRW also withheld from the government information about a massive recall of cell phone equipment because they contained similarly defective TRW HBTs just a month before the government began to experience its own HBT failures. Instead, TRW said the government problems were the result of a new defect that had never been seen before.

FMI: www.northropgrumman.com, www.phillipsandcohen.com/

Advertisement

More News

Infamous RV-10 Lawsuit Against Van's Aircraft Dismissed

Years of Wasted Effort, Resources, and Worry Signal Ongoing Defects In US Tort Law When the news first came out, in 2015, that Van's Aircraft was sued for a considerable amount of >[...]

Airborne 02.22.17: CAF Dixie Wing P-63A, AF1 Price Cut, SLS Manned Flt?

Also: Drone Light Show, Remotely Piloted Helos, TFR Busts, Gulfstream, XTI Aircraft, CA Airlines, Icelandair After more than 40 years since it’s last flight, the Commemorativ>[...]

AMA Drone Report 02.20.17: DJI & AMA Team Up, MultiGP, Drone Advisory Committee

Also: Another Dumb FL Drone Law, AMA Expo East!, Spaceport America Drone Summit DJI and AMA have launched a joint program to promote safe and responsible drone operations, train pu>[...]

Airborne 02.21.17: NASA 'Space Poop' Challenge, Drone Advisory, Boeing

Also: Alphabet Balloons, Aero-Calendar, DJI-AMA, Solar Research, Dreamliners, F-35, ALPA NASA Johnson Space Center, in partnership with NASA Tournament Lab and online crowdsourcing>[...]

GA Aircraft Shipments And Billings Down Almost Across The Board

Only Uptick Was In Turboprop Airplanes, Turbine Helicopters Hit Hard The news is pretty much all bad, and some of it is really bad, in the GAMA 2016 year-end report of aircraft shi>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2017 Web Development & Design by Pauli Systems, LC