Navistar to pay $50 million in DOJ settlement

By Marjorie Censer / May 27, 2021 at 3:30 PM

(Editor's Note: This has been updated to include comments from Navistar Defense.)

Navistar Defense has agreed to pay $50 million "to resolve allegations that it fraudulently induced the U.S. Marine Corps to enter into a contract modification at inflated prices for a suspension system" for Mine Resistant Ambush Protected vehicles, according to the Justice Department.

The Justice Department alleged that when asked to provide sales information, Navistar "knowingly created fraudulent commercial sales invoices and submitted those invoices to the government to justify the company's prices."

"The government relied on the fraudulent sales invoices in agreeing to Navistar's inflated prices," the Justice Department added.

The settlement resolves claims brought under a whistleblower suit by a former Navistar government contracts manager. The manager will receive $11.6 million of the settlement, according to DOJ.

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

In a statement, Navistar Defense said it "agreed to a settlement without any admission of wrongdoing or liability by our company because there was no wrongdoing; we do not believe the allegations were well founded in fact or law.

The company said it continues to "expressly deny all of the 12-year old allegations in this matter; and we continue our unwavering commitment to compliance with all regulations and laws that apply to our business."