Huntington Ingalls agrees to $9.2 million settlement

By Marjorie Censer / August 15, 2017 at 11:52 AM

Huntington Ingalls has agreed to pay $9.2 million to settle allegations "it violated the False Claims Act by knowingly overbilling the government for labor on U.S. Navy and Coast Guard ships at its shipyards in Pascagoula, [MS]," according to the Justice Department.

"Under the settlement, HII will make a payment of $7.9 million which, combined with earlier repayments, will result in the settlement recovery of approximately $9.2 million," the department continued in its announcement released Aug. 15.

The government alleged Huntington Ingalls mischarged labor incurred on certain contracts to other contracts and said the settlement addresses labor mischarging on Navy and Coast Guard contracts dating back to 2003.

"The settlement also resolves claims disclosed by [Huntington Ingalls] that it had billed the Navy and Coast Guard for dive operations to support ship hull construction that did not actually occur as claimed," the Justice Department said.

The allegations arose through a lawsuit filed by former Huntington Ingalls employee Bryon Faulkner under whistleblower provisions. The Justice Department said he will receive nearly $1.6 million from the case.

Under the settlement, the claims remain allegations and there is no determination of liability.

In a statement provided to Inside Defense, Huntington Ingalls said it "informed the Government of alleged misconduct by certain employees and fully cooperated with the Government in investigating and reaching a resolution of the matter. 

"The company has strengthened its compliance program to help ensure that no similar issues arise in the future," Huntington Ingalls added.

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