March 31 Helicopter maker Sikorsky has agreed to pay $3.5 million to settle U.S. allegations concerning inflated prices for spare parts for its Black Hawk military copters, federal prosecutors said on Monday.
The U.S. government alleged that Sikorsky, a unit of United Technologies Corp, violated the federal False Claims Act. It alleged the company from February 2008 to September 2011 failed to disclose complete cost and pricing data to a unit of the Army that purchases spare Black Hawk parts.
Sikorsky failed to disclose that it had lower prices for certain parts, leading the government to pay "artificially excessive prices," according to a press release from the U.S. Attorney's Office in Connecticut, where Sikorsky is based.
In a statement, Sikorsky said it "is pleased to have reached an agreement to resolve this matter with the Army and looks forward to continuing to work closely with the Army to maintain its fleet of Black Hawk helicopters." (Reporting by Lewis Krauskopf; Editing by Tom Brown)