Boeing to pay $4 million for inflating price on B-1 bomber contract

Boeing to pay $4 million for inflating price on B-1 bomber contract

2010-10-27 08:18:04 GMT+7 (ICT)

LOS ANGELES (BNO NEWS) -- The Boeing Company has agreed to pay $4 million to settle a civil lawsuit alleging that the company unlawfully inflated the price it charged the U.S. Air Force to manufacture a system for the B-1 bomber, prosecutors said on Tuesday.

United States Attorney André Birotte Jr. said the U.S. government's lawsuit, which was filed in 2008, alleged that Boeing provided inaccurate and incomplete information in connection with the company's proposal to obtain the contract to produce Towed Decoy System (TDS) kits, and that it had previously manufactured the kits for much lower costs.

The system deploys a decoy that is towed behind the B-1 bomber and is designed to protect the aircraft from guided missiles.

According to U.S. Attorney Birotte Jr., the lawsuit against Boeing was dismissed, and the company agreed to resolve the case without admitting wrongdoing.

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