P.M. BRIEFING : Justices Uphold Boeing Payment
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WASHINGTON — The Boeing Co. did not violate a federal conflict-of-interest law when the defense contractor paid $485,000 in severance to five employees who left to take government jobs, the Supreme Court ruled today.
By a 9-0 vote, the justices overturned a ruling, supported by the Bush Administration, that the money must be turned over to the government.
Justice John Paul Stevens, writing for the court, said the payments “give rise to a possible appearance of impropriety.”
But he said the conflict-of-interest law also permits “corporations to encourage qualified employees to make their special skills available to the government.”
As long as the employee has not begun working for the government, the law does not prohibit the payment, Stevens said.
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