Boeing Pays $25 Million To Settle Tanker Lawsuit

The lawsuit claimed Boeing defectively installed insulation in refueling tankers used in Iraq and Afghanistan and overcharged the government for the work.

By: Jamie Burch | WKRG-TV
Published: August 13, 2009

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WASHINGTON (AP) - Boeing Co. will pay the U.S. government $25
million to settle an investigation into defective work on critical
Air Force refueling planes.
The settlement arose out of a whistle-blower lawsuit filed in
Texas by two former Boeing workers who will now receive $2.6
million for drawing attention to the problem.
The Justice Department had investigated Boeing for allegedly
defective work on the fleet of KC-10 Extenders, which are used for
in-flight refueling in the Iraq and Afghanistan war theaters.
The original lawsuit claimed Boeing defectively installed
insulation in the aircraft and overcharged the government for the
work.
Boeing will pay $18.4 million in cash and do $6.6 million worth
of repair work.

(Copyright 2009 by The Associated Press. All Rights Reserved.)