Boeing Settles for $18M Over False Claims Act Suit Based on Inflated Labor Costs

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The DOJ announced Thursday that Boeing will pay $18 million under the False Claims Act for overcharging the Air Force for labor to maintain C-17 Globemaster aircraft. Like most False Claims Act cases, the suit was brought by a former Boeing employee, James Thomas Webb, who discovered the fraudulent billing practices while working at the company.

The case is a good reminder that while the False Claims Act is flexible and applies to all attempts to defraud the government, sometimes it’s the obvious cases that get overlooked. Padding bills, billing for services not rendered, billing for products not provided, or even simply billing for a few hours that were never worked are classic examples of false claims covered by the False Claims Act.