DOJ orders Lockheed Martin to pay $30M over defective pricing on F-35 contracts

The Department of Justice (DOJ) announced it reached a settlement with Lockheed Martin stemming from allegations of “defective pricing on contracts for F-35 military aircraft.” The deal comes days after Attorney General Pam Bondi was confirmed by the Senate, which will shift the DOJ’s focus away from white-collar misconduct.

Lockheed agreed to pay nearly $30 million to resolve allegations that it violated the False Claims Act, the DOJ said in a press release Thursday. Of the settlement total, $11.5 million is restitution and interest, according to Lockheed’s settlement agreement with the DOJ.

Between 2013-15, Lockheed inflated pricing proposals for F-35 military aircraft contracts during negotiations, the DOJ alleged, with the defense contractor receiving five contracts for the production or sustainment of the F-35. The case resolves claims brought under the qui tam provisions of the False Claims Act by Lockheed’s former auditor Patrick Girard. He will receive approximately $8 million of the settlement total, according to whistleblower law firm Constantine Cannon.