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Boeing, listed on the NYSE as BA, has agreed to pay a substantial $8.1 million. This settlement is for allegations of violating U.S. contractual obligations during the production of V-22 Osprey aircraft. The U.S. Justice Department made this announcement on Thursday.
Allegations Spanning Over a Decade
This settlement pertains to claims that Boeing, from approximately 2007 to 2018, breached the False Claims Act. Thus, due to its failure to meet specific requirements for producing composite components essential for the tiltrotor aircraft. These components were fabricated at Boeing’s facility located in Ridley Park, Pennsylvania, as reported by the Justice Department.
The Unique V-22 Osprey
The V-22 Osprey is a military aircraft with a distinctive capability: it takes off vertically like a helicopter. In Addition to, transitions by rotating its propellers to fly like a conventional plane.
Read more: Eli Lilly Settles Whistleblower Lawsuit Over Manufacturing Problems
Failure to Comply with Testing Requirements
According to the government’s allegations, Boeing neglected to conduct monthly testing on autoclaves, crucial for curing composite parts, as stipulated in its contract with the U.S. Navy. Furthermore, Boeing is to be in non-compliance with additional testing-related requirements, the Justice Department stated in a release.
Boeing’s Response In the settlement agreement, signed by legal representatives of Boeing and the Justice Department, Boeing maintained its denial of allegations concerning non-compliance with requirements. A spokesperson for Boeing stated, “entered a settlement agreement with the U.S. Department of Justice and the U.S. Navy to resolve certain False Claims Act allegations, without admission of liability.”
This settlement underscores the significance of adherence to contractual obligations in the aerospace industry and resolves the matter between Boeing and the U.S. government regarding the V-22 Osprey production issues.
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