Lockheed Pays Millions to Settle False Claims Allegations

The federal government's overpayment for tools to make fighter jets has led to a $15.85 million settlement between Lockheed Martin Corp. and the Justice Department, the agency announced on March 23.

While the defense contractor has not admitted wrongdoing, the payment resolves False Claims Act allegations, as the government alleged that Lockheed subcontractor Tools & Metals Inc., an aeronautics business tooling supplier, inflated costs for military aircraft tool orders for the government.