Boeing Pays $25 Million To Settle Tanker Lawsuit

Lawsuit Boeing The lawsuit claimed Boeing defectively installed insulation in refueling tankers used in Iraq and Afghanistan and overcharged the government for the work.
by The Associated Press
Published: Thu, August 13, 2009 - 4:07 pm CST
WASHINGTON (AP) - Boeing Co. will pay the U.S. government $25
million to settle an investigation into defective work on critical
Air Force refueling planes.
The settlement arose out of a whistle-blower lawsuit filed in
Texas by two former Boeing workers who will now receive $2.6
million for drawing attention to the problem.
The Justice Department had investigated Boeing for allegedly
defective work on the fleet of KC-10 Extenders, which are used for
in-flight refueling in the Iraq and Afghanistan war theaters.
The original lawsuit claimed Boeing defectively installed
insulation in the aircraft and overcharged the government for the
work.
Boeing will pay $18.4 million in cash and do $6.6 million worth
of repair work.

(Copyright 2009 by The Associated Press. All Rights Reserved.)
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