Allegheny Teledyne to Pay Settlement

Allegheny Teledyne Industries Inc. has agreed to pay the U.S. government $11.5 million to settle charges of fraud and failure to test military equipment properly. The settlement resolves two separate lawsuits by the federal government against the company’s Teledyne Industries unit, the Justice Department said. In the first case, prosecutors alleged that the company altered and destroyed records covering a series of contracts to repair Air Force planes. The second lawsuit accused Teledyne of supplying the military with improperly tested aerospace wire and cable. The settlement included no admission of wrongdoing by the company. Allegheny Teledyne executives couldn’t immediately be reached for comment. . . . In a separate development, Lockheed Martin Corp. agreed to pay the federal government $5.3 million to settle charges that it overcharged the Pentagon for military equipment. The Justice Department alleged that Martin Marietta Corp., which was bought by Lockheed in 1995, intentionally bid low to win a contract to develop a supersonic low-altitude target for missiles and then made up for the shortfall by boosting research and development costs. The settlement resolves a lawsuit brought against the company by a former employee, Jerry Mayman, who sued Bethesda, Md.-based Lockheed on behalf of the federal government. Mayman will receive $795,000 for bringing the alleged wrongdoing to the government’s attention.