Defense Contractor Settles $37 Million False Claims Act Suit

ATK Launch Systems, Inc. agreed to pay the United States $37 million to settle allegations that it sold dangerous and defective illumination flares to the Army and the Air Force. The settlement requires ATK to pay $21 million and to provide an estimated $16  million worth of repairs.

The qui tam suit alleged that ATK knowingly delivered flares that were incapable of withstanding a 10-foot drop test.  The flares, used for nighttime combat, covert, and search and rescue operations, were used by U.S. forces in Afghanistan and Iraq.

The qui tam suit was initially brought by a former employee in federal district court in Salt Lake City, Utah in 2006.

Posted in Defense Fraud, SettlementsNo Comments


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