Lockheed Martin agrees to pay $30M over F-35 overcharging allegations

WASHINGTON

Lockheed Martin has agreed to pay nearly $30 million to settle allegations that it overcharged the Pentagon to produce and maintain the F-35 stealth jet fighter, according to the Justice Department.

The defense contractor allegedly failed to provide the Pentagon's F-35 Joint Program Office with accurate cost information during negotiations on five contacts that covered the production and sustainment of the jets, according to the settlement agreement, published Thursday. Justice Department attorneys had argued that the defense firm had knowledge of the true costs, but did not disclose them to the office in violation of the Truth in Negotiations Act, which requires a contractor to submit full cost and pricing data if it enters negotiations with the government.

“Those who do business with the government must do so fairly and honestly,” Acting Assistant Attorney General Brett Shumate said in a statement. “We will pursue contractors that knowingly misuse taxpayer funds.”

The settlement comes on top of the $11.3 million that Lockheed Martin agreed to pay to the Defense Department for the same cost and pricing information it provided for some of the contracts covered in some of the same contracts.