Austal USA LLC (Austal), a Mobile, Alabama, based company, has agreed to pay $811,259 to resolve allegations that it violated the False Claims Act by knowingly supplying valves that did not meet military specifications.

Austal manufactures numerous ships for the United States, including the Independence Class Littoral Combat Ship (LCS). The United States' settlement alleges that, under a 2011 Navy contract, Austal invoiced for military grade high performance butterfly valves and triple offset butterfly valves it installed on five LCS hulls when it knew the valves had not met the testing requirements to be deemed military grade.

“It is essential to the safety and operational readiness of our Navy fleet that contractors comply with applicable military specifications,” said Principal Deputy Assistant Attorney General Brian M. Boynton, head of the Justice Department's Civil Division. “We will continue to hold accountable those who knowingly supply equipment to the U.S. military that fails to meet contract specifications.”

“We cannot and will not tolerate companies who cut corners and misrepresent the products they provide to our military,” said U.S. Attorney Todd W. Gee for the Southern District of Mississippi. “This office is committed to protecting taxpayer dollars and will pursue fraud wherever we find it.”

“Supplying nonconforming parts to the Department of Defense (DoD) compromises military systems and potentially endangers the lives of U.S servicemembers,” said Special...

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