Northrop Grumman Settles with United States

Northrop Grumman, a defense and aerospace company founded in 1927, has agreed to a settlement in which the company is to return $325 million to the United States. An investigation by the government showed that Northrop Grumman sold defective items to the National Reconnaissance Office.

Satellite (Image: Flickr)

The items in question were transistors that were used on military satellites. Northrop Grumman allegedly not only didn’t probably test the parts, they also concealed reports concerning the quality of the items.

In a separate lawsuit, the United States agreed to a $325 million settlement with Northrop Grumman concerning an ongoing contract despite between the company and the Air Force. Northrop Grumman had been claiming that their contract with the government was unlawfully terminated.

As a result, the two settlements offset each other. Northrop Grumman says that they are happy with the outcome because they will be able to avoid litigation and continue their important business relationship with the United States government.