Shipbuilder Huntington Ingalls to pay $9.2 mln over false claims case
(Adds company statement, background, adds shipbuilder to headline)
By Sarah N. Lynch
WASHINGTON, Aug 15 (Reuters) - Defense contractor Huntington Ingalls Industries Inc will pay $9.2 million to settle civil charges that it violated the False Claims Act by overbilling for labor on U.S. Navy and Coast Guard ships, the U.S. Justice Department said Tuesday.
The company, the largest shipbuilder for the U.S. government, settled the case without admitting any liability in the matter.
A Huntington Ingalls spokesperson said the company had informed the government of alleged misconduct by certain employees and fully cooperated with the government in investigating and reaching a resolution of the matter.
The Justice Department said the allegations date back as far as 2003, and were originally made in a whistleblower lawsuit brought by Byron Faulkner, a former HII employee.
The company spokesperson said it has strengthened its compliance program to help ensure no similar issues arise in the future.
Huntington Ingalls is headquartered in Newport News, Virginia and had revenues of over $7 billion in 2016, according to Thomson Reuters data.
The company's shares were 0.03 percent lower at $214.95 in midday trading. (Reporting by Sarah N. Lynch; Additional reporting by Mike Stone; Editing by Chizu Nomiyama and James Dalgleish)
