Northrop Grumman/TRW — Government Contracting/Overcharging ($111 million).
One of our whistleblower attorneys led the representation of Richard Bagley, a former chief financial officer for TRW’s Redondo Beach unit, in a qui tam action under the False Claims Act against Northrop Grumman Corp. and TRW Inc. for overcharging the Department of Defense on various military programs. Mr. Bagley alleged that the defendants shifted costs from private contract work to government contracts, engaged in unlawful accounting methods, and manipulated their financial data to collect millions of dollars in excess payments on Defense Department programs. The government joined the case, and the defendants paid $111 million. Mr. Bagley received a whistleblower reward of $27 million. See NY Times and LA Times for more.