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-Unmanned w/AUVSI

Airborne On ANN

AMA 08.17.17

Airborne 08.21.17

Airborne 08.22.17

Airborne 08.23.17

Airborne 08.17.17

Airborne 08.18.17

Airborne-Unmanned 08.22.17

Airborne-YouTube

AMA 08.17.17

Airborne 08.21.17

Airborne 08.22.17

Airborne 08.23.17

Airborne 08.17.17

Airborne 08.18.17

Airborne-Unmanned 08.22.17

NEW!!! 2017 AirVenture Innovation Preview -- YouTube Presentation / Vimeo Presentation

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

RFP: ANN Seeking New Site/Facility For Major Studio Upgrade

It's Official: Aggressive Upgrades For New Airborne Programs WILL Require New Digs It's been in development for years, but we're getting to a point where we think we can pull off s>[...]

AMA Drone Report 08.17.17: MULTI-GP Int'l Open, Drone v Chicago, Reno Drone Race

Also: Yuneec Extended Service Plan, UAV on A/C Carrier, Blue Angels Incident, Drone Operator Safety Act MultiGP’s 2017 MultiGP International Open, conducted on the grounds of>[...]

Airborne-Unmanned 08.22.17: Flightwave, Robotic Skies, Sky Hopper Cargo Drone

Also: Kratos Mako, Dronecode's Meier, Virginia Tech, Edwards AFB, Department Of The Interior A California-based startup company plans to introduce a new, long-range, high-endurance>[...]

Airborne 08.22.17: Privatization $$$, A Hangar for Doc, Wingsuit Jet

Also: Next X-37B Mission, Aero-Calendar, Ryanair, Citation X, Aurora, Commercial Spaceflight Federation, A&P Designation ATC Privatization will be even costlier than thought...>[...]

Airborne 08.21.17: CAF's Brown Resigns, EA700 Prototype, Heli Sales Report

Also: KSFO Night Landings, Kitfox S7 Speedster, USGS, Spirit Pilots, Kratos Mako, NASA Flight Suits, CAW Five Stephan C. Brown has resigned from his post as president/CEO of the Co>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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