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Northrop Grumman settles fraud suit for $62 million

Defense contractor Northrop Grumman Corp. has agreed to pay $62 million to settle a nearly 16-year-old case alleging that the company systematically overcharged for materials used in the production of high-tech devices for warplanes. The government also claimed that Northrop inflated costs and lied about the progress of a radar jammer.

The payment is only about a sixth of the $369 million that the government had been seeking.

The case was the result of a qui tam whistleblower lawsuit brought by two former employees.

The Chicago Tribune reported on the settlement on March 2, 2005

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