FOR IMMEDIATE RELEASE

CIV

THURSDAY, JANUARY 21, 1999

(202) 616-2765

WWW.USDOJ.GOV

TDD (202) 514-1888

U.S. SETTLES FALSE CLAIMS SUIT AGAINST COMPANY

TELEDYNE WITHHELD INFORMATION IN

PREVIOUS FALSE CLAIMS SETTLEMENT WITH THE GOVERNMENT

WASHINGTON, D.C. -- Allegheny Teledyne Incorporated has agreed to pay $2.79 million to settle allegations that Teledyne withheld from the government testing cost data used in the United States Air Force's APX-109 program when settling an earlier 1994 False Claims Act action against Teledyne, the Department of Justice announced today.

The government's investigation confirmed that the withheld data relating to "identification of friend or foe" equipment caused the United States to receive a lower payment than it would otherwise have received when settling the earlier False Claims Act action.

"Defendants should be aware that when they negotiate settlements with the United States they must deal forthrightly with the Department of Justice," said Assistant Attorney General Frank W. Hunger of the Civil Division. "They must fully, completely and accurately disclose information requested in negotiations."

The qui tam lawsuit was filed in December 1996 in U.S. District Court in Los Angeles, Calif., by a former Teledyne internal audit department employee. The qui tam provisions of the False Claims Act permit a private citizen to file a suit on behalf of the federal government and collect a portion of the money if the government's action is successful.

The Federal Bureau of Investigation's Ventura, Calif., office conducted the government's investigation, with assistance from the Defense Contract Audit Agency.

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