NORTHROP SETTLES SUIT AGAINST TRW FOR $111 MILLION.Byline: Gregory J. Wilcox Staff Writer Northrop Grumman Northrop Grumman Corporation (NYSE: NOC) is an aerospace and defense conglomerate that is the result of the 1994 purchase of Grumman by Northrop. The company is the third largest defense contractor for the U.S. Corp. said Monday it will pay $111 million to settle a joint whistle-blower whis·tle·blow·er or whis·tle-blow·er or whistle blower n. One who reveals wrongdoing within an organization to the public or to those in positions of authority: "The Pentagon's most famous whistleblower is . . and federal lawsuit lawsuit: see procedure; tort. that claimed a competitor it bought - TRW TRW The Real World (TV reality show) TRW The Right Way TRW Tactical Reconnaissance Wing TRW The Retriever Weekly (University of Maryland, Baltimore, MD) TRW Thompson Ramo Wooldridge Inc Inc. - had overcharged on government contracts. Last year, Los Angeles-based Northrop Grumman paid $7.8 billion for TRW, and the suits against that company were filed in 1994 and 1995 in the U.S. District Court for the Central District of California. The dispute focused on several contracts covering five primary programs at TRW's Space Park facility in Redondo Beach Redondo Beach (rĭdŏn`dō), city (1990 pop. 60,167), Los Angeles co., S Calif., on the Pacific Ocean; inc. 1892. Once a commercial port for Los Angeles, it is a residential and resort city with a protected harbor and an excellent marina. . In a statement, Northrop Grumman denied any liability for violating the federal False Claims Act and agreed to settle the matter to allow management to focus on running the business. TRW had been fighting the claims. The company also said that it took the settlement into account while in the process of acquiring Cleveland-based TRW. That being the case, Northrop Grumman said it continues to expect 2003 earnings per share of $3.80 to $4.20. Although cash from operations will be affected by the settlement, the company still expects 2003 cash from operations of $1.1 billion to $1.3 billion, excluding the $1 billion B-2 tax payment. ``We're pleased to have this matter behind us,'' said Northrop Grumman spokesman Frank Moore Frank Moore is a name shared by the following individuals:
The company still faces three other federal lawsuits involving allegations of accounting rule violations and fraud. Those lawsuits could cost the company an additional $1 billion in damages if it loses and the court awards the maximum amount. One involves overbilling at Newport News Newport News, independent city (1990 pop. 170,045), SE Va., on the Virginia peninsula, at the mouth of the James River, off Hampton Roads, near Norfolk; inc. 1896. Ship Building, which Northrop Grumman bought in 2001. The other two involve Northrop Grumman programs. In one of those, the government is seeking $210 million plus penalties associated with alleged overbilling on an aerial targets program. That case is set for trial in September, Moore said. None of the cases should have much impact on the global defense company, said analyst Paul H. Nisbet at JSA JSA - Japanese Standards Association. Research Inc. in Newport, R.I. ``I would say that it's not all that unusual. Look at the (Securities and Exchange Commission filings) from the top 10 companies and you would find similar things,'' he said of the lawsuits. ``That doesn't make it good, but a lot of this will go by the boards.'' Gregory J. Wilcox, (818) 713-3743 greg.wilcox(at)dailynews.com |
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