GE Aerospace Settles for $9.4 Million Over Inspection Lapses in Military Equipment (Insurance Journal)

GE Aerospace Settles for $9.4 Million Over Inspection Lapses in Military Equipment

  Monday, November 13th, 2023 Source: Insurance Journal

GE Aerospace’s plant in Lynn, Massachusetts, recently settled with the federal government for $9.4 million over allegations of skipping critical inspections and selling nonconforming parts to the U.S. Army and Navy. This misconduct, which reportedly occurred between July 2014 and December 2019, involved missing inspections, failure to use proper gauges for part inspections, and the inclusion of inappropriate metal fragments in engines. Such lapses could potentially compromise military hardware, national security, and the safety of service personnel.

The settlement addressed claims of violations of the federal False Claims Act, a key legal tool for the government in tackling alleged fraud. GE Aerospace, headquartered in Evendale, Ohio, was recognized in the settlement for its cooperation and remedial actions, which the company stated began over five years ago. Approximately $5.4 million of the settlement amount was designated as restitution.

GE, which is currently based in Boston, has been undergoing significant restructuring. In 2021, the company announced its plan to divide into three separate entities focusing on aviation, energy, and healthcare. It has already spun off its healthcare business and intends to spin off the energy division in the second quarter of the next year. Post these changes, GE will primarily operate as an aviation-focused company under the name GE Aerospace.

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