FOR IMMEDIATE RELEASE|
MONDAY, JUNE 9, 2003
TDD (202) 514-1888
TRW SUCCESSOR FIRM TO PAY UNITED STATES $111 MILLION
TO SETTLE FALSE CLAIMS ACT CASE
WASHINGTON, D.C. - Northrop Grumman Space & Mission Systems Corporation (NGSMS), the successor to TRW Inc., has agreed to pay $111.2 million for allegedly overcharging the United States on government contracts. The government alleged that between the years 1990 and 1997, TRW employees engaged in five separate schemes that increased the costs the government paid the aerospace contractor.
Assistant Attorney General Robert D. McCallum Jr. and Debra W. Yang, U.S. Attorney for the Central District of California (Los Angeles) today announced the settlement.
The settlement agreement resolves two lawsuits filed in 1994 and 1995 by Richard D. Bagley, the former director of financial control at TRW's Space & Technology Group, based at TRW's Space Park facility in Redondo Beach, California. The cases were later consolidated. The United States intervened in part of the lawsuit in 1998 and the remainder in 2000, assuming primary responsibility for the entire case. In December 2002, Northrop Grumman Corporation acquired TRW and renamed it NGSMS.
The schemes alleged were:
Under the qui tam or whistleblower provisions of the False Claims Act, a private party is authorized to file suit against the alleged wrongdoer on behalf of the government. Subject to certain statutory provisions, if the lawsuit results in a monetary judgment or settlement, the private party is entitled to a share of the proceeds. Under the settlement terms, Mr. Bagley will receive $27,244,000.
The successful resolution of this matter is the result of a lengthy investigation by the Air Force Office of Special Investigations, the National Aeronautics and Space Administration Office of the Inspector General, the Army Criminal Investigative Command, the Naval Criminal Investigative Service, the Defense Contract Management Agency and the Defense Contract Audit Agency.
The case is entitled United States ex rel. Bagley v. TRW Inc., No. CV 95-4153-AHM.