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L-3 Communications EOTECH, Inc. Settles False Claims Act Lawsuit for $25.6 Million
A Manhattan federal court has approved a settlement between the United States and L-3 Communications EOTECH, Inc., and its parent company L-3 Communications Corporation, over the sale of defective holographic weapon sights to the U.S. Department of Defense, the U.S. Department of Homeland Security, and the Federal Bureau of Investigation.
According to the complaint filed in Manhattan federal court, EOTECH has earned tens of millions of dollars through its sales of sights to DOD, DHS, and the FBI. In 2004, and again in 2010, EOTECH contracted with DOD to supply holographic weapon sights for use in close quarter urban combat as well as longer range target acquisition. EOTECH represented to DOD that its sights could operate in temperatures ranging from -40 degrees to 140 degrees Fahrenheit, as well as in humid and other extreme environmental conditions.
However, the complaint alleges that Defendants knew that the sights failed to perform as represented in cold temperatures and humid environments, but delayed disclosure of these defects for years. In connection with the settlement, approved today by United States District Judge Richard Sullivan, EOTECH and L-3 have agreed to pay the United States $25,600,000.
Defendant: L-3 Communications EOTECH, Inc., L-3 Communications Corporation, Paul Mangano
Criminal Charges: False Claims Act
City and State: New York
Exact Date: N/A (settlement approved)
Sentence or Outcome: $25,600,000 settlement
Dollar Amounts: $25,600,000
In a statement, Manhattan U.S. Attorney Preet Bharara said, ‘The defendants, L-3, EOTech, and EOTech’s senior executive Paul Mangano, engaged in fraudulent double dealing by selling defective products to the men and women who risk their lives to protect our country. With their own sights focused exclusively on corporate profits, the defendants let our soldiers fight with defective sights on their weapons.’
DoD-OIG Northeast Field Office Special Agent in Charge Craig Rupert added, ‘This settlement illustrates the seriousness of the harm to the Defense Department and other federal agencies from defective products. The safety of our warfighters and law enforcement who depend on these products is paramount in the fight against terror and crime.’
Key Facts
- State: New York
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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