FOR IMMEDIATE RELEASE CIV FRIDAY, MAY 31, 1996 202 514-2007 (TDD) 202 514-1888 DANA CORPORATION TO PAY UNITED STATES $10.175 MILLION TO SETTLE FRAUDULENT OVERCHARGING CLAIMS ON AIR FORCE CONTRACTS WASHINGTON, D.C. -- The Department of Justice announced today that Dana Corporation of Toledo, Ohio, has agreed to make a final payment of $10.175 million to the United States to settle the remaining portion of the United States' lawsuit alleging that Dana's former division, Beaver Precision Products, Inc., of Troy, Michigan, overcharged on ball screws used in F100 high-performance jet engines obtained by the Air Force during 1981-1994. In September, 1995 Dana paid $19.5 million to the United States to settle related claims. Dana's $29.675 million total payment settles the government's lawsuit, filed November, 1992, in United States District Court for the Eastern District of Michigan, that charged that Beaver, principally through its controller and major contracts administrator, Mr. Bernard Coyne, had knowingly inflated proposals on sole-source, negotiated government contracts for ball screw actuators. Ball screw actuators are motorized control devises used on Patriot and MLRS missiles, B-1, C-5, C-130 and F-14 aircraft, and the F100 jet engine. The government estimates that Beaver increased its revenues by approximately $10 million by the scheme. Assistant Attorney General Frank W. Hunger, head of the Civil Division, emphasized that the successful completion of the complex litigation resulted from exemplary audit efforts by Defense Contract Audit Agency auditors and exhaustive investigative effort by the Army Criminal Investigative Division and by the Defense Criminal Investigative Service. In January, 1985 Dana Corporation purchased the stock of the parent corporation of Beaver Precision Products,Inc., and, by December 1986 the three companies had merged. In March, 1991, Dana Corporation sold its Beaver operations to a subsidiary of LHC Capital Corporation, and has had no ownership interest in Beaver since that time. The False Claims Act entitles the government to seek triple damages and a $10,000 civil penalty for each false claim submitted. ##### 96-248