Sikorsky Settles False Contract Claims for $3.5M

Connecticut-based Sikorsky Aircraft Corporation has agreed to pay $3.5 million to settle allegations that the company knowingly submitted or caused the submission of false claims in connection with inflated prices for Black Hawk helicopter parts, the U.S. Attorney’s Office for the District of Connecticut announced earlier this week.

Sikorsky, which manufactures Black Hawk helicopters and spare parts for the U.S. military, allegedly failed to disclose accurate, complete and current cost and pricing data to the Army Aviation and Missile Life Cycle Management Command (“AMCOM”).  AMCOM is one of the purchasing commands of the Army that is charged with purchasing spare parts for the Black Hawk.

The Truth In Negotiations Act requires that contractors disclose accurate, complete and current cost and pricing data to the government during the negotiation process.  When determining the prices to be charged to the government, Sikorsky failed to disclose that it had lower prices for certain parts.  As a result, the government paid artificially excessive prices for those parts.

The False Claims Act allows private parties with knowledge of fraud against the government to sue on behalf of the government and share in the recovery.  Had there been a whistleblower in this case, the whistleblower could have received up to a million dollars as their 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.