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Violation Tracker Individual Record

Company: Northrop Grumman Systems Corporation
Current Parent Company: Northrop Grumman
Penalty: $31,650,000
Year: 2018
Date: November 2, 2018
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Secondary Offense: fraud
Mega-Scandal: Federal Contractor Abuses
Violation Description: Northrop Grumman Systems Corporation agreed to pay a total of $31.65 million to settle civil and criminal investigations into fraud arising out of its Battlefield Airborne Communications Node and Dynamic Re-tasking Capability contracts with the United States Air Force. NGSC agreed to pay $27.45 million to settle civil allegations that it violated the False Claims Act by overstating the number of hours its employees worked on the contracts. Additionally, NGSC agreed to forfeit $4.2 million in a separate agreement to resolve a criminal investigation into fraudulent billing on the BACN contract. In exchange for admitting its employees' misconduct, making full restitution, and agreeing to cooperate in the ongoing criminal investigation, no criminal charges were filed against NGSC.
Level of Government: federal
Action Type: agency action
Agency: U.S. Attorney-Southern District of California
Civil or Criminal Case: civil and criminal
Prosecution Agreement: non-prosecution agreement
HQ Country of Current Parent: USA
HQ State of Current Parent: Virginia
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: aerospace and military contracting
Specific Industry of Current Parent: aerospace & military contracting
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.