Boeing settles lawsuit over missile decoy device

AP News
Posted: Oct 26, 2010 2:15 PM
Boeing settles lawsuit over missile decoy device

Boeing Co. has agreed to pay $4 million to settle a lawsuit alleging the company overcharged the Air Force for a decoy system to protect against guided missiles.

The U.S. attorney's office in Los Angeles said Tuesday that Boeing allegedly gave inaccurate information over the so-called "Towed Decoy System." When deployed behind a B-1 bomber, the system tricks a missile into following the device instead.

The government says Boeing never told Air Force contract negotiators it had previously manufactured the decoy more cheaply, largely through outsourcing.

In the settlement, Boeing agreed to resolve the case without admitting wrongdoing.

The Chicago-based company has admitted no wrongdoing and says it resolved the case to avoid further disruption to its business.