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HUGHES TO SETTLE FRAUD SUIT : EX-WORKERS WIN AWARD OVER ALTERED CIRCUIT TESTS.


Byline: Daily News Wire Services

Two Hughes Aircraft Hughes Aircraft Company was a major aerospace and defense company founded by Howard Hughes. The group was based near Ballona Creek, in Culver City, California, USA, on the Pacific Coast.

Hughes Aircraft was acquired by General Motors in 1985.
 workers who told the government 10 years ago that the company was not properly testing microelectronic circuits used in fighter planes are getting an $891,000 reward.

The government announced Tuesday that Hughes will pay $4.05 million to settle a fraud suit brought originally by Margaret Goodearl and Ruth Aldred and later taken over by the government.

Hughes was convicted of criminal conspiracy on the same matter in 1992 and fined $3.5 million. The verdict was largely based on the evidence of the women, who were supervisors at Hughes' microelectronic circuit division in Newport Beach Newport Beach, residential and resort city (1990 pop. 66,643), Orange co., S Calif., on Newport Bay and the Pacific Ocean; inc. 1906. It is a popular seaside resort and yachting center. Manufactures include electrical and medical equipment, computers, boats, and adhesives. .

Aldred, who now lives outside San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , said through her lawyers that ``despite the toll it has taken, it was the right thing to do.''

Goodearl, now of Washington, D.C., could not be reached immediately by telephone.

``This completely vindicates Ruth Ann Aldred and Margaret Goodearl, who made great personal and professional sacrifices to see justice done,'' said Mary Louise Cohen cohen
 or kohen

(Hebrew: “priest”) Jewish priest descended from Zadok (a descendant of Aaron), priest at the First Temple of Jerusalem. The biblical priesthood was hereditary and male.
, a Washington attorney who represented them.

Cohen said the women tried to bring the testing matter to the attention of management, but ``they were told to keep quiet and warned they might get fired if they didn't do so.''

The women told government investigators about their concerns in 1986. Afterward af·ter·ward   also af·ter·wards
adv.
At a later time; subsequently.

Adv. 1. afterward - happening at a time subsequent to a reference time; "he apologized subsequently"; "he's going to the store but he'll be back here
, said their lawyer, ``they were ostracized by their co-workers and supervisors. Aldred left Hughes in 1988, saying she had been relieved of all meaningful responsibilities. Goodearl was laid off the next year.

From 1985 to 1987, the Justice Department said, Hughes ordered its employees not to perform certain environmental screening tests, to pass circuits that had failed particular tests and to falsify falsify,
v to forge; to give a false appearance to anything, as to falsify a record.
 documents to show the tests had been done properly.

The circuits are crucial parts of high-technology systems, including radar on the F-14, F-15 and F-18 fighter aircraft fighter aircraft

Aircraft designed primarily to secure control of essential airspace by destroying enemy aircraft in combat. Designed for high speed and maneuverability, they are armed with weapons capable of striking other aircraft in flight.
.

Goodearl and Aldred filed their civil suit in 1990. The government intervened and took over the case later.

Under the False Claims Act, whistle-blowers bringing suit are entitled en·ti·tle  
tr.v. en·ti·tled, en·ti·tling, en·ti·tles
1. To give a name or title to.

2. To furnish with a right or claim to something:
 to a portion of the amount recovered by the government, not exceeding 25 percent. Hughes will pay a separate and additional $450,000 for the women's lawyers and the advocacy group, Taxpayers Against Fraud.

Hughes officials couldn't be reached for comment. The company's stock rose -3/8 to 54-1/2 Tuesday.
COPYRIGHT 1996 Daily News
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1996, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Title Annotation:BUSINESS
Publication:Daily News (Los Angeles, CA)
Date:Sep 11, 1996
Words:385
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