Justice Dept. to Take Over Suit Against TRW
CLEVELAND — The Justice Department gave notice Tuesday that it will take over a $1.2-billion lawsuit filed by three former employees of defense contractor TRW Inc. who allege that the company committed fraud.
U.S. Atty. Patrick McLaughlin said the notice was filed Tuesday in U.S. District Court--the last day the government could step into the suit, which was filed April 4.
The government is intervening under the False Claims Act, a seldom-applied Civil War-era law enacted to halt profiteering. It allows private individuals to bring action on behalf of the government if information in the complaint is unknown to the government.
The suit alleges that Ohio-based TRW defrauded the government by manipulating prices in violation of antitrust laws in connection with defense contracts to supply parts for the B-1 bomber and jet fighters.
Other defendants are General Electric, United Technologies and Iscar Blades Ltd., Israel’s prime defense contractor. TRW is a major shareholder in Iscar Blades.
Other allegations raised by the former employees are to be further investigated by the Defense Department for possible inclusion in the suit, McLaughlin said.
TRW spokesman Michael Johnson said the company has supported the government taking on the suit and said the three former employees were fired for allegedly violating TRW’s ethical code.
He said TRW uncovered the wrongdoings during an internal investigation and volunteered the findings to the government in late 1984.
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