General Dynamics Corporation, a major military defense contractor, in 2008 settled a False Claims Act case with the U.S. government for $4,058,750. The lawsuit alleged that General Dynamics committed fraud when it billed the government for defective parts used in Navy aircraft and submarines.
The whistleblowers in the case were former employees who worked at the Long Island facility of a General Dynamics subsidiary, General Dynamics Armament and Technical Products, Inc. (GDATP). The government later intervened in the lawsuit. The lawsuit alleged that between September 2001 and August 2003, the company defectively manufactured and failed to properly manufacture and test parts used in Navy aircraft, including the C-141 transport plan. Additionally, the lawsuit alleged that the company failed to properly test and manufacture components used in Los Angeles and Trident Class submarines.
According to the lawsuit, GDATP and General Dynamics, in spite of knowing that the parts did not meet Navy specifications, billed the Navy for the parts in violation of the contract and federal law.