General Electric Co. and two of its subcontractors have paid $11.5 million to settle a qui tam lawsuit that alleged that GE sold defective engine parts to the U.S. military. The parts were used in military airplanes and helicopters.
According to the lawsuit quality-control problems at GE’s Aircraft Engines division facility in Madisonville, Kentucky resulted in the shipping of nonconforming parts. Two subcontractors, Howmet Corp., a subsidiary of Alcoa, and Precision Castparts Corp. manufactured unfinished castings for the blades, which GE then finished at the Madisonville facility.
The Corporate Crime Reporter ran a story on the settlement on July 21, 2006.