Facts

General Electric Aviation Systems (GEAS), which is headquarter in Ohio, makes and sells integrated systems and components for commercial, business, military and marine airplanes. In addition, GEAS has a manufacturing facility located in Santa Ana, California, where portions of military airplanes are created. In 2007, GEAS entered into an agreement with the U.S. Navy to manufacture and deliver external fuel tanks for certain strike fighter jets, and manufactured them at its Santa Ana location. In March 2008, the tanks did not pass government tests, leading to a multi-agency investigation. Consequently, a qui tam lawsuit was filed on behalf of the U.S. government against GEAS.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that defendant submitted false claims relating to several Dept. of Defense contracts. Plaintiff claimed that GEAS knew that its fuel tanks did not comply with contractual provisions and that GEAS did not properly perform quality control in relation to the fuel tanks that were delivered between June 2005 and February 2008.

DEFENDANT'S CONTENTIONS:
GEAS denied liability.

Result

GEAS agreed to pay $6.58 million.