U.S. Launches Probe on Titan Payments

Lockheed Martin Corp. said the Justice Department started a criminal probe of payments made to foreign officials by Titan Corp., the San Diego firm Lockheed agreed to buy last year.

The investigation centers on whether payments were made by consultants for Titan, a maker of military communications equipment, in violation of the Foreign Corrupt Practices Act, Lockheed said. Lockheed, based in Bethesda, Md., also said it was reviewing whether payments by Titan to its consultants were accurately reflected on the company’s books.

Titan shareholders are scheduled to vote on the $1.8-billion sale to Lockheed on March 16. The results of the Titan and Lockheed internal reviews, a Securities and Exchange Commission investigation and the Justice Department inquiry may not be completed by that date. In that case, Lockheed would have to decide whether conditions of the purchase agreement were met.