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United Technologies Price Inflation Case Sets False Claims Act Record

United Technologies Corporation (UTC) is liable for overcharging the U.S. Air Force on fighter aircraft engines for F-15 and F-16 aircraft between 1985 and 1990, according to a U.S. District Court for the Southern District of Ohio ruling.  The U.S. Government was awarded $364 million for UTC’s False Claims Act (FCA) violations, the highest FCA recovery ever obtained by the government, and an additional $109 million for the government’s common law claims.  The total judgment against United Technologies may exceed $500 million once the court calculates prejudgment interest on the government common law claims.  

 “The department will relentlessly pursue justice against those who knowingly submit false claims to the government and abuse the public contracting process,” said Stuart Delery, Acting Assistant Attorney General for the Civil Division.   “It is vital that companies who do business with the government provide full and accurate information, and if they do not, they will pay the consequences.”  

The government alleged that UTC’s proposed prices for the engine contract misrepresented how UTC calculated those prices, resulting in the government paying hundreds of millions more than it otherwise would have paid for the engines.  Specifically, the government alleged that UTC failed to include in its price proposal historical discounts that it received from suppliers, and instead knowingly used outdated information that excluded such discounts. 

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