Northrop Wins Whistle-Blower Suit

Northrop Grumman Corp. has won a long-running on-again, off-again whistle-blower lawsuit pitting former employee Michael Hyatt against the company over allegations that the company knowingly manufactured defective parts for the Peacekeeper missile. In a ruling released this week, the U.S. 9th Circuit Court of Appeals reversed itself and affirmed the dismissal of Hyatt’s False Claims Act case, effectively ending a convoluted legal battle begun in 1986. Although Hyatt eventually won a wrongful termination claim, a federal judge dismissed the underlying whistle-blower case. In April 1996, the appeals court overturned the lower ruling and let the case proceed. But the U.S. Supreme Court last year ordered the appeals court to reconsider its stance after the high court rejected a similar case. After that review, the appeals court agreed with the earlier judgment in favor of Century City-based Northrop. “Naturally, we’re pleased with the opinion,” said Jim Hart, a Northrop spokesman. “It brings to a close a case that was in the courts for more than 10 years.” Attorneys representing Hyatt could not be reached for comment.