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Thursday, July 19, 2007

Defense contractor settles $8M claim       Send a link to a friend

[July 19, 2007]  WASHINGTON (AP) -- Defense contractor Northrop Grumman Corp. agreed Wednesday to pay the government $8 million to settle charges it failed to test parts in equipment used by U.S. troops in Afghanistan and Iraq.

Tubes used in night vision goggles and sniper scopes were not properly tested at the defense contractor's Tempe, Ariz., plant between 2000 and 2002, the Justice Department said. Prosecutors said the faulty tests did not result in safety concerns, and Northrop voluntarily informed the Defense Department of the problem in 2002.

The settlement "is a reminder to defense contractors that there are no contractual shortcuts on testing equipment necessary for our troops," said Assistant Attorney General Peter D. Keisler.

Northrop spokesman Tom Henson said the contractor "fully cooperated with the investigation," adding, "We are happy to have this matter resolved."

[Associated Press]

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