Boeing pays $23M settlement over labor charges

AP News
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Posted: Oct 10, 2014 10:28 PM

SAN ANTONIO (AP) — The Boeing Co. has paid $23 million to settle allegations that it submitted false labor charges to the U.S. Air Force for contract maintenance on C-17 Globemaster transport aircraft.

A Justice Department statement issued Friday says the allegations centered on labor costs the Chicago-based company charged improperly for maintenance and repair work at Boeing's Aerospace Support Center in San Antonio.

The allegations were made initially by four present and former Boeing employees acting as whistleblowers. They will divide $3.9 million as their share of the settlement under terms of the False Claims Act.

In a brief statement, Boeing called the discrepancies "a matter of inadequate charging discipline" not deliberate wrongdoing. The company said it's improved charging practices.