Phillips & Cohen qui tam case against Northrop settles for $12.5 million

June 23, 2010, LOS ANGELES - The fraud charges Northrop Grumman is settling today for $12.5 million were brought to the government's attention by a company manager in its Salt Lake City, Utah, plant who filed a "qui tam" (whistleblower) lawsuit against Northrop in federal district court in Los Angeles in 2006.

After investigating the whistleblower's allegations, the federal government determined that Northrop for nine years had failed to test certain electronic components it sold the military for use in the navigation systems of planes, helicopters and submarines.

Phillips & Cohen LLP represented whistleblower Allen Davis, formerly a quality assurance manager with Northrop's navigation systems division in Salt Lake City. He will receive a reward of $2.3 million as provided in the "qui tam" provisions of the False Claims Act.

Statement from Claire M. Sylvia, Phillips & Cohen LLP, San Francisco:
"Allen Davis demonstrated a lot of courage in reporting to the government that his employer was failing to ensure that parts used in military products were properly tested. He did everything he could to raise his concerns with his supervisors, but they ignored his complaints. So he turned to us to become a whistleblower to force the company to address the problem. Mr. Davis is deeply committed to doing his part to keep our armed forces safe."

Statement from Allen Davis:
"If an everyday person such as myself can bring about change for the better, anyone can. I pursued this case because we owe the men and women of the armed forces our best efforts to provide them with the best equipment possible. They are risking their lives every day and depend on the equipment we build to stay safe."

For more information about Phillips & Cohen's record, see P&C's Successful Whistleblower Cases.