Unysis Settles with U.S. in Contract Case

The government and Unisys Corp. reached a settlement under which the company will surrender up to $1.5 million in civil penalties and its predecessor is spared criminal prosecution for alleged false statements on an Air Force contract, the Justice Department said Monday.

The settlement stems from alleged misrepresentations made by Sperry Corp., a predecessor company to Unisys, on an Air Force computerized support system known as the Phase IV program.

The government had alleged that Sperry submitted false statements and claims, contending that it had performed all the work required by the contract between 1983 and 1985.

In 1986, Sperry merged with the Burroughs Corp. to form Unisys.

John Bolton, chief of the Justice Department’s civil division, said the civil settlement accompanied an overall settlement of a criminal case handled by the U.S. Attorney’s Office in Montgomery, Ala.

Bolton said that, under the civil settlement agreement, Unisys has paid the government $700,000 and also will abandon a claim it filed against the Air Force for more than $800,000.

James Wilson, the U.S. attorney for the Middle District of Alabama, also said that U.S. District Judge Joel Dubina has dismissed an Oct. 18, 1988, indictment against Sperry alleging that the firm made false statements on contract invoices.

Dubina dismissed similar charges against Unisys in December.