General Electric, Subcontractors Settle False Claims Act Lawsuit Over Defective Parts for $11.5M

In 2006, General Electric Co. (GE) and two of its subcontractors resolved a False Claims  Act lawsuit for $11.5 million that alleged the companies sold defective products to the U.S. military including blades for use on airplanes and helicopters.

According to the allegations, over several years’ time, faulty quality control at GE’s Madisonville, Kentucky, Aircraft Engines division resulted in the defective blades. The manufacturing problems resulting in the defects included problems with the casting and testing of the products. The unfinished castings, which were completed at the GE facility, were made by subcontractors Howmet Corp. and Precision Castparts Corp. Both companies were also defendants in the lawsuit.

The False Claims Act suit was filed in federal court in Kentucky by several GE employees. For their role in pursuing the case, they shared an award of $2,357,500.

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