Boeing Co. pays $18 million to settle labor-overcharge suit

AP News
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Posted: Oct 14, 2015 8:00 PM

LOS ANGELES (AP) — The Boeing Co. has paid $18 million to settle a whistleblower lawsuit that claimed it overcharged the government for labor on the C-17 Globemaster III aircraft at its Long Beach Depot Center.

The U.S. Justice Department announced the payment on Wednesday.

Boeing had Air Force contracts to maintain and repair the giant transport aircraft in Long Beach. The government and a former employee claimed that from 2006 to 2013, Boeing improperly charged for time its mechanics spent at lunch and on breaks.

Boeing says it took "prompt corrective action" after learning of the irregular billing practice and cooperated with the government investigation.

Last fall, Boeing agreed to pay $23 million to settle similar allegations that it overcharged for Globemaster work at a center in San Antonio, Texas.