In October 2000, seven employees of General Electric Aircraft Engine’s Turbine Airfoil plant in Madisonville, Kentucky filed a False Claims Act case challenging the lack of proper controls at the plant during the manufacturing of critical jet engine components called “blades” and “vanes.” These critical parts were installed in aircraft, ships, helicopters, and tanks bought by the Navy, Air Force, Army, and Marine Corps, including the President’s aircraft, Air Force One and Marine One.
After a lengthy investigation, the United States Department of Justice determined it should join the False Claims Act case and pursue the claims against General Electric for the conduct brought to light by the whistleblowers.
General Electric paid $11.5 million to settle the case and an undisclosed amount for retaliation against two of the whistleblowers in July, 2006. General Electric was also held liable for substantial legal fees incurred by our clients. The Department of Justice agreed to pay the whistleblowers $2,357,500 from General Electric’s settlement.