Lockheed Martin Subsidiaries Settle $70 Million Overpricing Case with Navy

The settlement resolves allegations of inflated charges for aircraft parts, highlighting issues in the defense procurement process.

Sikorsky Support Services and Derco Aerospace were involved in improper subcontracting for Navy aircraft parts.
The companies agreed to a $70 million settlement without admitting wrongdoing.
The lawsuit was initiated by a whistleblower under the False Claims Act.
The case dates back to 2011, predating Lockheed Martin's acquisition of Sikorsky.
Officials emphasize the settlement as a deterrent against future procurement exploitation.