The Equal Employment Opportunity Commission, which brought the 2005 suit, said in Washington the settlement was the largest individual racial-discrimination payment obtained by the agency, The Wall Street journal said.

The suit, filed in U.S. District Court for the District of Hawaii, claimed that Charles Daniels, an aviation electrician, employed by the company from 1999 to 2001, was subjected to racial harassment by co-workers on a daily basis. He also allegedly faced death threats after he complained to supervisors who were accused of taking no action.

Lockheed contested the case as a false "characterization of the facts" but said it decided to settle in the best interests of the company and Daniels.