New Jersey

Defense Contractor to Pay $27.5M Overbilling Settlement

Authorities say a subsidiary of defense contractor Lockheed Martin has agreed to pay $27.5 million to resolve allegations that it overbilled the government.

U.S. Attorney Paul Fishman said Friday that Lockheed Martin Integrated Systems agreed to the settlement after it allegedly overbilled the government for work on two U.S. Army Communications and Electronics Command contracts.

A message seeking comment left with Lockheed Martin wasn't immediately returned.

The work was done at Fort Monmouth in New Jersey, and the Aberdeen Proving Ground in Maryland. Fishman says LMIS used under-qualfied employees, but billed the government the rates meant for more qualified workers.

Fishman says that the overbilling led to higher profits for LMIS.

Copyright AP - Associated Press
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