Defense contractor Northrop Grumman will pay $12.5 million to settle a lawsuit with the U.S. government, the U.S. Department of Justice said Wednesday.

The civil false claims lawsuit alleged that Northrop knowingly submitted false claims to a number of military branches and government agencies. The claims were connected to electronic parts supplied for use navigation systems for military airplanes, helicopters, submarines and certain equipment used in space.

In a statement, Northrop Grumman said it has fully cooperated with the government's investigation and is "pleased" that the matter is now behind it.

The U.S. alleged that the failures to test parts continued from November 1998 until February 2007. The settlement resolves claims made in a whistleblower lawsuit filed in May 2006 against Northrop in the U.S. District Court for the Central District of California by Allen Davis.

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