FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, NOVEMBER 2, 1995                         (202) 616-2765
                                               TDD (202) 514-1888

                                 
          TELEDYNE PAYS U.S. $2 MILLION TO SETTLE CASE 
           INVOLVING FAULTY TESTING PROCEDURES FOR USAF
                                 
     WASHINGTON, D.C. -- Teledyne Industries Inc. of Los Angeles,
California, will pay the United States $2 million to settle
allegations the firm violated the False Claims Act by improperly
performing tests and failing to calibrate test equipment in
manufacturing units the Air Force used to identify friendly or
hostile aircraft, the Department of Justice announced today.    
     Assistant Attorney General Frank W. Hunger said the case was
filed originally in July 1994 in U.S. District Court in Los
Angeles as a qui tam lawsuit by George Cave, a former employee at
Teledyne's Newbury Park, California, facility.   
     The government, before taking over the lawsuit in July 1995,
conducted an investigation that concluded that the United States
had civil fraud causes of action against Teledyne relating to the
company's testing of Identification Friend or Foe APX-101
transponder units and the calibration of  equipment used to test
the units.  Transponders are placed aboard military aircraft and
enable an aircraft to identify itself automatically when queried
by radar signals originating from ground-based or airborne IFF
equipment.
     Under the False Claims Act, an individual can sue on behalf
of the United States and share in any recovery if the government
takes over the case and prosecutes it successfully.  Cave will
received $300,000.  Teledyne also agreed to pay Cave an
additional $200,000 for attorneys' fees, costs and other
expenses. 
     The case was investigated by the FBI's Ventura, California,
office; the Air Force's Office of Special Investigations at Los
Angeles Air Force Base; and the Naval Criminal Investigative
Service's Regional Fraud Unit at Upland, California.  Audit
support was provided by the Western Region Investigations Support
Unit of the Defense Contract Audit Agency.  
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95-565