M.K. Battery to Settle False Claims for $5.5M; Whistleblower to Get $990K

Posted: 09/19/2014  browse the blog archive
M.K. Battery to Settle False Claims for $5.5M; Whistleblower to Get $990K

M.K. Battery and its parent company, East Penn Manufacturing, have agreed to pay $5.5 million to resolve allegations that the company knowingly submitted or caused the submission of false claims to the Department of Defense, the Minneapolis Star Tribune reported earlier this week.

M.K. Battery produced backup batteries that operate Humvee turrets in the event that the engine gives out.  The lawsuit alleged that the manufacturing process was changed and cut the battery’s lifespan in half by nearly 50 percent, so that it no longer met contract specifications and, in a worst case scenario, endangered the lives of American soldiers.

The lawsuit was filed by David McIntosh, a former employee for M.K. Battery, under the whistleblower provision of the False Claims Act.  The Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  McIntosh will receive $990,000 as his portion of the settlement.

The Chanler Group, in association with the Hirst Law Group, represents whistleblowers who take action under the False Claims Act to report fraud committed against the federal and state governments.  We have years of experience representing whistleblower clients who expose every kind of fraud against the government, including health care fraud, contract fraud, and tax fraud.  Read more about our expertise in False Claims Act cases and how you can take action.