Boeing pays $25 million to settle U.S. probe
Posted August 12, 2009 11:00 pm
WASHINGTON -- Boeing Co. will pay the U.S. government $25 million to settle an investigation into defective work on critical Air Force refueling planes.
The settlement arose out of a whistle-blower lawsuit filed in Texas by two former Boeing workers who will now receive $2.6 million for drawing attention to the problem.
The Justice Department had investigated Boeing for allegedly defective work on the fleet of KC-10 Extenders, which are used for in-flight refueling in the Iraq and Afghanistan war theaters.
The original lawsuit claimed Boeing defectively installed insulation in the aircraft and overcharged the government for the work.
Boeing will pay $18.4 million in cash and do $6.6 million worth of repair work.
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