Examples of defense contractor fraud
Examples of alleged defense contractor fraud that have come to light include: In May 2021, a major defense contractor paid $50 million to resolve an FCA lawsuit based on allegations that it created fake invoices for supposed past sales of vehicle parts and presented those to the government during contract negotiations to build parts for mine-resistant ambush-protected vehicles (“MRAPs”).3
MRAPs are used to transport troops in combat zones where improvised explosive devices may be planted. The whistleblower who initiated the litigation, a contracts manager for the contractor, was awarded more than $11 million for his role in the litigation.3
In 2018 and 2019, three defense contractors agreed to pay a total of more than $120 million to resolve an FCA lawsuit based on allegations that they rigged bids for oil-delivery services. The whistleblower, the brother-in-law of an executive at one of the companies, was awarded more than $27 million for his role in the litigation.3
In July 2018, 3M Company agreed to pay the federal government $9.1 million to resolve an FCA lawsuit related to its Combat Arms Earplugs used by military service members. The whistleblower, a company that made competing earplugs, had alleged that 3M and its predecessor, Aearo Technologies, Inc., knew that their earplugs had a design defect that caused them to loosen in soldiers’ ears. The whistleblower was awarded $1.9 million for their role in the litigation.3
Attorneys with our team have handled cases involving millions of dollars in fraud related to defense contractors.1,4