$70 Million Settlement In False Claims Act Case Against Sikorsky Support Services, Inc. And Derco Aerospace, Inc.
Cross Law Firm, S.C., is proud to announce a significant victory in a recent False Claims Act litigation case. Together with the dedicated team at the Department of Justice, our firm successfully represented a Whistleblower in a complex case that resulted in Sikorsky Support Services, Inc. and Derco Aerospace, Inc., paying some $70 million to the United States Government in a settlement regarding their alleged improper markups of spare aircraft parts and other alleged military contract fraud. This case underscores the importance of holding companies accountable for fraudulent practices and protecting the integrity of government contracts.
The case centered around allegations that Sikorsky Support Services, Inc. and its affiliated company, Derco Aerospace, Inc., had been inflating the prices of spare parts sold to the U.S. Navy and had allegedly entered into an illegal cost-plus-percentage-of-cost contract. These improper markups were in violation of the False Claims Act, which aims to prevent fraud against the federal government. Our dedicated team meticulously investigated the claims, gathering substantial evidence to support our Whistleblower’s allegations.
The government contended that Sikorsky and Derco knowingly added excessive markups to spare parts they provided under various contracts. These inflated prices were then passed on to the government, leading to significant financial losses. The Whistleblower, who was former Derco employee, brought these allegations to light, demonstrating the critical role Whistleblowers play in exposing fraud.
On the defense side, Sikorsky and Derco initially denied any wrongdoing, arguing that their pricing practices were within the bounds of their contracts and industry standards. They contended that the markups were justified based on the costs associated with procuring and managing the spare parts and that the alleged cost-plus-percentage-of-costs contract was not improper. Despite these arguments, the evidence presented by Cross Law Firm, S.C. and the Department of Justice, as initiated by the Whistleblower painted a different picture, revealing an alleged pattern of systematic overcharging.
After extensive negotiations and legal proceedings, Sikorsky and Derco agreed to a $70 million settlement to resolve the allegations. In accordance with the False Claims Act, our Whistleblower client was awarded a share of the Government’s recovery of nearly $14 Million Dollars, demonstrating that being a Whistleblower in a Cross Law Firm case, can be extremely lucrative.
The $70 million settlement is a significant victory for our client and a testament to the power of Whistleblower litigation. It highlights the importance of vigilance in monitoring government contracts and ensuring that taxpayer dollars are used appropriately. At Cross Law Firm, S.C., we are committed to representing Whistleblowers and holding companies accountable for fraudulent practices. Our successful handling of this case reinforces our dedication to justice and integrity and to obtaining Millions of Dollars for our Whistleblower clients
For more information about this case or to discuss potential Whistleblower claims, please contact Cross Law Firm, S.C. We are here to help you navigate the complexities of Whistleblower litigation and serve justice to wrongdoers.