Ship Maker to Pay $811,259 to Settle False Claims Violations

Austal USA, a Mobile, Ala., based company, has agreed to pay $811,259 to resolve allegations that it violated the False Claims Act by knowingly supplying valves that did not meet military specifications, the Justice Department said Tuesday.

Austal manufactures numerous ships for the United States, including the Independence Class Littoral Combat Ship (LCS). The United States’ settlement alleges that, under a 2011 Navy contract, Austal invoiced for military grade high performance butterfly valves and triple offset butterfly valves it installed on five LCS hulls when it knew the valves had not met the testing requirements to be deemed military ...