Boeing pays $23 million to settle false claims allegations

WASHINGTON, Oct. 16 (UPI) -- The U.S. Justice Department said Boeing Company has paid $23 million over allegations it submitted false claims for labor performed on C-17 maintenance.

The government allegations over false billing to the U.S. Air Force had originally been made in a lawsuit by present and former Boeing employees in federal court in San Antonio, Texas, under the False Claims Act.

"Today's (Oct. 10) settlement demonstrates that the Justice Department vigilantly ensures that companies meet their contractual obligations and charge the government appropriately," said Acting Assistant Attorney General Joyce R. Branda for the Justice Department's Civil Division. "Government contractors who seek illegal profit at the expense of taxpayers will face serious consequences."

The government alleged that Boeing improperly charged labor costs for the maintenance and repair of C-17 Globemaster aircraft at the company's Aerospace Support Center in San Antonio.

Boeing, it alleged, "knowingly and improperly billed a variety of labor costs in violation of applicable contract requirements, including for time its mechanics spent at meetings not directly related to the contracts."

The three workers who originally filed suit will receive $3,910,000.00 as their share of the settlement.

The payment by Boeing resolves the matter of the allegations. No determination of liability was made.