On Thursday, January 30, 2014, a whistleblower lawsuit alleging that Northrop Grumman defrauded the Department of Homeland Security (“DHS”) was unsealed in federal Court. According to the suit, which was filed under the qui tam provisions of the False Claims Act by former Northrop Grumman employee Leo Danilides, Northrop Grumman violated the terms of a DHS missile-defense contract for commercial airlines under the Counter-MANPADS program. Under the contract, which was awarded to Northrop in 2006, Northrop was required to provide improvements to earlier work it had done on creating a missile defense system for commercial airlines and to create a commercially feasible system. Danilides alleged that Northrop failed to make any meaningful improvements to its earlier program, despite receiving $62 million from DHS.
For more information see: http://goo.gl/QxS1M5.