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CONFIDENTIAL

Aug. 6, 1994

Torts
False Claims Act
Qui Tam Provisions

Confidential

Settlement –  $82,000,000

Judge

Mariana R. Pfaelzer

Court

USDC Central


Attorneys

Plaintiff

Howard F. Daniels


Defendant

Brad D. Brian
(Munger, Tolles & Olson LLP)


Experts

Plaintiff

Kenneth Walls
(technical)

Patrick McGeehan
(technical)

John J. Higgins
(technical)

Facts

Between 1981 and 1992, Defendant data processing firm, Litton Systems, Inc. (a subsidiary of Litton Industries, Inc.), allegedly shifted costs for data processing from its commercial customers to Pentagon contracts. Litton is based in Beverly Hills. The case was originally filed under the qui tam provisions of the False Claims Act by Taxpayers Against Fraud and whistle-blower Jim Carton, a former Litton technical director. After investigation of the claims, Plaintiff United States intervened in the case and took over the litigation.

Settlement Discussions

Offers and demands were not disclosed.

Damages

$650,000,000 in damages and penalties

Other Information

Although confidentiality on settlements is our normal policy, we made an exception here due to high media coverage of this settlement.


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