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Appeals court revives false claims lawsuit against Lockheed Martin

The 9th Circuit found evidence that the company may have intentionally underbid a government contract

The 9th Circuit reinstated part of a false claims lawsuit against Lockheed Martin Corp. over allegations that the company fraudulently underbid a U.S. Air Force contract to support space launch operations.

Former Lockheed employee Nyle Hooper filed the suit, claiming that the company entered a bid of $432.7 million to the Range Standardization and Automation IIA program, even though it knew the budget was not feasible. In addition, Hooper alleged, Lockheed used free open-source software and used defective testing procedures without informing the Air Force. Hooper was fired in 2002, allegedly after threatening to expose the underbidding.

Alanna Byrne

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