Lockheed Will Pay Millions To Settle Suit

FORT WORTH (AP) – Lockheed Martin will pay $15.8 million to settle a lawsuit that it overcharged the government for tools used on military aircraft programs.

The Justice Department says the settlement stems from a 2005 case when a former worker from Tools and Metals Inc. filed suits against the company for overcharging Lockheed.

Whistle-blowers Robert Spencer and John Becker will split a $2 million share of the settlement.

Spencer and Becker both filed lawsuits alleging that TMI owner Todd Loftis engaged in price fixing. Loftis was sentenced to seven years in prison for fraud.

The Justice Department said Lockheed acted recklessly by failing to adequately oversee TMI's charging practices.

Lockheed said it did not engage in inappropriate billing but wanted to close the matter.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)