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Contracts
Fraud
Government

United States v. Aerojet, GenCorp Inc.

Published: Dec. 31, 2011 | Result Date: Nov. 23, 2011 | Filing Date: Jan. 1, 1900 |

Case number: N/A Settlement –  $3,300,000

Court

Case Not Filed


Attorneys

Plaintiff

Catherine J. Swann
(Office of the U.S. Attorney)


Defendant

Brian E. Sweeney


Facts

GenCorp Inc. and its wholly-owned subsidiary, Aerojet-General Corporation, ("the Company") conducted business in missile propulsion, and armaments markets, selling products involved in U.S. government contracts. Following an investigation by Defense Criminal Investigative Service, Army Criminal Investigative Command, and Air Force Office of Special Investigations, the U.S. Attorney's office subpoenaed the Company relating to the allowability of certain costs under its U.S. Government-related prime and subcontracts.

Result

The Company and the United States Attorney entered into a settlement wherein the Company paid $3.3 million and agreed not to seek reimbursement for the costs of the investigation and defense of this issue. The investigation focused on certain corporate costs incurred with respect to unusual proxy expenses in 2004 and 2006.


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