Boeing Settles False Claims Allegations

Boeing has paid the U.S. government $18 million to settle allegations the contractor submitted false claims for labor charges on Air Force maintenance contracts for the C-17 Globemaster, the Justice Department announced today.

The government alleged Boeing knowingly charged the government for time mechanics spent on breaks and lunch hours at the company's Long Beach Depot Center in Long Beach, CA.

"Boeing took prompt corrective action immediately after it became aware of the site's irregular billing practice, and the company cooperated fully with the government investigation," Boeing said in a statement provided to InsideDefense.com.

The allegations were originally brought by a former Boeing employee under whistleblower provisions. His share of the settlement has not yet been determined, the Justice Department said.

The claims resolved by the settlement remain allegations, and there was no determination of liability.