FOR IMMEDIATE RELEASE CIV THURSDAY, MAY 15, 1997 (202) 616-2765 TDD (202) 514-1888 U.S. JOINS SUIT AGAINST TEXTRON AND TEXTRON AEROSTRUCTURES WASHINGTON, D.C. -- The United States has intervened in a qui tam action filed against Textron Inc., and its former division, Textron Aerostructures, alleging that the defense contractor fraudulently overpriced Air Force subcontracts for the manufacture of wings for the B-1B Bomber, the Department of Justice announced today. Assistant Attorney General Frank W. Hunger of the Civil Division and John M. Roberts, U.S. Attorney in Nashville, Tennessee, said William F. Manier, a former Textron Aerostructures' employee, originally filed the action on behalf of the United States pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. 3730. "Vigorous prosecution of defense procurement fraud remains one of the Department's highest priorities," said Hunger. The complaint, filed in U.S. District Court in Nashville, alleged that Textron failed to disclose its true labor costs when negotiating the price of two Air Force subcontracts, resulting in the overpricing of an Air Force contract for the production of the B-1B Bomber by tens of millions of dollars. Textron Aerostructures entered into the two subcontracts, worth almost $500 million, to manufacture pivot wing assemblies for the prime B1-B contractor, Rockwell International Corporation. Rockwell is not a defendant in the suit. The complaint was filed under seal as required by the act and unsealed by the court Wednesday following the notice of intervention filed by the United States. The False Claims Act provides that the complaint remains under seal while the government investigates and decides whether to intervene and proceed with the action. The suit was filed under a provision of the act that allows private parties to sue companies and individuals that have submitted false claims to the federal government. A successful relator may receive a percentage of the United States' recovery. The case is United States ex rel. Manier v. Textron Inc., C.C. No. 3-95-0946 (M.D. Tenn.). Textron Aerostructures, now known as Aerostructures Inc. and no longer owned by Textron, is located in Nashville. The Department's Civil Division and the U.S. Attorney's office in Nashville will pursue the case. The government plans to file an amended complaint. The Air Force Office of Special Investigations and the Defense Criminal Investigative Service investigated the matter. ### 97-201