Lockheed Martin has agreed to pay $15.85 million to resolve allegations under the False Claims Act that it failed to properly supervise a subcontractor that provided it with perishable tools used in many of its government contracts.  According to the government, the company recklessly passed on the subcontractor’s inflated bills to the government.  The president of the subcontractor, Tools & Metals Inc. (TMI), pled guilty in 2005; the civil complaint against Lockheed was filed shortly thereafter.  The suit was initiated by two whistleblowers who will share $2 million as a result of their efforts in bringing the case to the government’s attention.

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