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Tue April 1, 2014
Sikorsky Pays Millions to Settle Pricing Allegations
Helicopter maker Sikorsky has agreed to pay $3.5 million to settle allegations that it overcharged the military for spare parts.
Federal prosecutors revealed the settlement of a long-running investigation Monday. The deal relates to charges that Stratford-based Sikorsky violated the federal False Claims Act. The prosecutors failed to disclose complete supply-chain cost and pricing data to the Army when it was purchasing spare parts for Black Hawk helicopters.
The company is said to have had lower costs for certain parts, but forced the Defense Department to pay artificially inflated prices. It alleged the over-pricing ran for several years from February 2008 to September of 2011.
Sikorsky admitted no wrongdoing in reaching the settlement. In a statement, the company said it is pleased to have reached an agreement to resolve the matter, and looks forward to continuing to maintain the Army's fleet of Black Hawk helicopters.
The U.S. Attorney in Connecticut said that in an era of shrinking defense budgets, it's particularly important to safeguard taxpayers from unnecessary expenditures.