U.S. joins suit against Lockheed and vendor

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U.S. joins suit against Lockheed and vendor
November 19, 2007


WASHINGTON (Reuters) - The United States has joined a whistleblower lawsuit against Lockheed Martin Corp and one of its vendors that alleges the government was overcharged millions of dollars for certain tools, the Justice Department said on Monday.
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The suit charges that Lockheed vendor Tools & Metals Inc overcharged for items including drill and router bits, and that Lockheed Martin was liable because it failed to oversee its vendor, the department said.

If it prevails, the U.S. government could recover three times the amount of its losses plus penalties.

Lockheed Martin said it would fight the lawsuit and said the Justice Department's decision to join the suit was at odds with prior comments about the case.

The original suit was filed in U.S. District Court in Dallas by a TMI employee and a TMI competitor. Under whistleblower provisions, a private party can file on behalf of the United States and collect a portion of what is recovered.

The Justice Department described the government losses as being in the "millions of dollars" but declined to be more specific.

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http://www.boston.com/news/nation/washington/articles/2007/11/19/us_joins_suit_against_lockheed_and_vendor/