Whistleblower suit alleges Navistar forged military vehicle invoices
Story by:@ FreightWaves
A federal judge unsealed a 6-year-old whistleblower suit against Navistar Defense LLC and Navistar International Corp. (NYSE: NAV) that seeks at least $1.28 billion in damages over allegedly forged invoices for military vehicles and components.
According to the civil suit unsealed Dec. 3, Navistar violated the False Claims Act by forging invoices, catalog prices, and other data during negotiations of a multibillion-dollar contract for mine-resistant, ambush-protected (MRAP) vehicles and related components from 2006 to 2013.
In August 2017, the U.S. Department of Justice accused Navistar Defense of making false and misleading statements during price negotiations and a resulting audit. The Justice Department claimed Navistar Defense overcharged by $88 million for independent suspension systems in 2009 and 2010. It sought treble damages and penalties totaling $264 million.
Navistar Defense has been in discussions with the Department of Defense Inspector General and Justice Department since subpoenas were first issued in the third quarter of 2016. The government is continuing to question Navistar employees, according to Navistar’s third-quarter 10-Q filing with the U.S. Securities and Exchange Commission.
“We believe our pricing was fair, reasonable and competitive,” Navistar spokeswoman Lyndi McMillan said. “The company intends to defend itself as necessary and appropriate.”
Story continues HERE @ freightwaves.com
Source and credits: freightwaves.com /Alan Adler / iTrucker / Mario Pawlowski