FALSE CLAIMS ACT WHISTLEBLOWER BLOG: Boeing Pays $23 Million to Settle an FCA Government Contract Fraud Whistleblower Lawsuit

The Boeing Company recently paid $23 million to settle a whistleblower lawsuit brought under the civil False Claims Act alleging government contract fraud. Specifically, the whistleblower lawsuit alleged that Boeing submitted false claims for labor charges associated with maintenance contracts for the C-17 Globemaster Aircraft between Boeing and the U.S. Air Force.

The lawsuit alleged that Boeing engaged in government contract fraud by improperly charging labor costs to contracts with the U.S. Air Force for the maintenance and repair of the C-17 Globemaster Aircraft, a Boeing manufactured aircraft used to transport military troops and supplies. Specifically, the civil False Claims Act lawsuit alleged that the company knowingly and improperly billed labor costs to these contracts which were not allowed under the contracts terms. For example, the government alleged that Boeing violated the civil False Claims Act by billing for the time its mechanics spent at meetings not directly related to the contracts.

Government contractor whistleblowers have increased over the past few years. Many government contracts require the party contracting with the government to follow strict accounting standards when billing government contracts for work performed pursuant to the contract. Failure to follow these standards could result in government contract fraud.

The whistleblowers in this government contract whistleblower lawsuit received $3,910,000 as whistleblower compensation for alerting the federal government of this government contract fraud.

The case is United States ex rel. Craddock v. Boeing, Case No. SA-07-CA-0880FB (W.D. Tex.).  The claims resolved by the settlement are allegations only; there has been no determination of liability.

No Fees Without Recovery

Ross M. Wolfe and the Weiser Law Firm litigate whistleblower lawsuits on a contingent fee basis, so whistleblowers do not pay attorneys’ fees or court costs unless there is a recovery.

Please contact Ross M. Wolfe if you would like to speak with a whistleblower attorney for more information about the whistleblower process, government contract fraud or to schedule a meeting to confidentially discuss your potential case.

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