Sikorksy Can Claim Feds Knew of Contract Approach at Fraud Trial

Sikorsky Support Services Inc. can argue that the US government knew about its aircraft parts billing approach at the parties’ False Claims Act trial, which will begin next month.

Federal prosecutors say Lockheed Martin subsidiaries Sikorsky and Derco Aerospace Inc. violated the FCA by seeking payments from the US Navy for aircraft parts despite agreeing to a subcontract on an unlawful “cost-plus-a-percentage-of-cost” basis. They sought to exclude evidence suggesting that federal agencies approved of Sikorsky’s subcontract.

But the evidence is relevant to scienter—Sikorsky’s state of mind—Judge Lynn Adelman, of the US District Court for the Eastern District of Wisconsin, said ...