Boeing pays $23M to settle allegations of false labor charges on Air Force maintenance work

Associated Press

The Boeing Co. has paid $23 million to settle allegations that it submitted false labor charges to the U.S. Air Force for contract maintenance on C-17 Globemaster transport aircraft.

A Justice Department statement issued Friday says the allegations centered on labor costs the Chicago-based company charged improperly for maintenance and repair work at Boeing's Aerospace Support Center in San Antonio.

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The allegations were made initially by four present and former Boeing employees acting as whistleblowers. They will divide $3.9 million as their share of the settlement under terms of the False Claims Act.

In a brief statement, Boeing called the discrepancies "a matter of inadequate charging discipline" not deliberate wrongdoing. The company said it's improved charging practices.