Honeywell Says Body Armor Case Should End Because U.S. Got Paid

Honeywell International Inc. will tell the D.C. Circuit on Wednesday that the time has come to end the Justice Department’s 13-year body armor fraud suit against it, because settlements with other companies have made the government whole.

The case could have major consequences for how multiple defendants must split big-dollar judgments in fraud cases and ultimately encourage big companies to drag their feet in settlement negotiations.

Honeywell says that under a dollar-for-dollar offset approach known as pro tanto, Honeywell owes the government $0, not $35 million, because the government has already recovered $36 million in other False Claims Act settlements. ...