Northrop Grumman (ticker: NOC, exchange: New York Stock Exchange (.N))
News Release -
Northrop Grumman Settles Sixteen-Year-Old Lawsuit
LOS ANGELES, March 1, 2005 /PRNewswire-FirstCall via COMTEX/ -- Northrop Grumman
Corporation (NYSE: NOC) agreed to settle a 16-year-old complaint filed by four
employees of Northrop Corporation and the U.S. Department of Justice under the
qui tam provisions of the civil False Claims Act (U.S. ex rel. Rex Robinson v.
Northrop Grumman Corporation).
The company said it will pay approximately $62 million to settle all
claims, including that Northrop in the 1980s inappropriately accounted for
scrap parts at its facility in Rolling Meadows, Ill. The company also has
agreed to settle the relators' personal claims, including their claim for
attorney fees, and to reimburse the government for previously billed legal
costs incurred by the company.
The company expressly denied any liability for violating the False Claims
Act and has agreed to settle this matter, allowing the company's management to
focus on the company's excellent business prospects.
As a result of the settlement, the company recorded a pre-tax charge of
$35 million to its 2004 fourth quarter operating results and expects to pay a
total of $99 million in the first quarter of 2005. Accordingly, income from
continuing operations for the 2004 fourth quarter totaled $273 million, or
$0.74 per diluted share, compared with the previously reported $296 million,
or $0.81 per diluted share. Income from continuing operations for 2004
totaled $1.09 billion, or $2.99 per diluted share, compared with the
previously reported $1.12 billion, or $3.06 per share.
Northrop Grumman Corporation is a global defense company headquartered in
Los Angeles, Calif. Northrop Grumman provides a broad array of
technologically advanced, innovative products, services and solutions in
systems integration, defense electronics, information technology, advanced
aircraft, shipbuilding, and space technology. The company has more than
125,000 employees and operates in all 50 states and 25 countries and serves
U.S. and international military, government and commercial customers.
Certain statements and assumptions in this report contain or are based on
"forward-looking" information (that Northrop Grumman believes to be within the
definition in the Private Securities Litigation Reform Act of 1995) and
involve risks and uncertainties, and include, among others, statements in the
future tense, and all statements accompanied by terms such as "project,"
"expect," "estimate," "assume," "guidance" or variations thereof set out in
Northrop Grumman's filings from time to with the Securities and Exchange
Commission, including, without limitation, Northrop Grumman reports on Form
10-K and Form 10-Q.
SOURCE Northrop Grumman Corporation
Media, Frank Moore, +1-310-201-3335, or Investors, Gaston Kent, +1-310-201-3423, bot
of Northrop Grumman Corporation