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Northrop Grumman Settles Two Lawsuits

Northrop Grumman Corporation agreed to an $80 million joint settlement of two civil False Claims Act complaints filed by the U.S. Department of Justice. Of the $80 million, the government allocated $60 million to settle allegations that Newport News Shipbuilding, Inc., acquired by Northrop Grumman in December 2001, improperly charged certain independent research and development costs to its government contracts between 1994 and 1999. The suit was filed in February 2003 in the U.S. District Court for the Eastern District of Virginia. The case is United States of America v. Newport News Shipbuilding, Inc. #1:03CV142-A. The government allocated the balance of the $80 million to settle claims filed in May 1995 in the U.S.