Northrop-Grumman To Pay $5.2 Million Penalty

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Defense contractor Northrop Grumman will pay $5.21 million to settle allegations it misled the Air Force about test results on an apparently faulty paint system for the B-2 stealth bomber, federal prosecutors said Wednesday.

In the settlement finalized Tuesday, Northrop agreed to pay the sum by Dec. 21, officials said. However, the company did not admit to wrongdoing.

From 1998 to 2002, Northrop developed and started using its Advance Topcoat System on B-2s. During the development and testing of the paint, Northrop found problems with it and tried to fix it, prosecutors said. The U.S. Attorney’s Office in Los Angeles coordinated an investigation of Northrop for alleged violations of the federal False Claims Act, and the company cooperated with the probe, prosecutors said.

&#8226 CLICK HERE to read the Los Angeles Daily News story.

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