RENO, Nev. (AP) - A Nevada defense contractor agreed Tuesday to pay $320,000 to settle a whistleblower's claims that the company failed to adequately test electronic parts sold to NASA and the Defense Department.
Maxwell-Sierra of Carson City, a division of San Diego-based Maxwell Technologies, sold the parts for use in a number of military and aerospace programs in the early 1990s.
There were never any allegations that the parts were faulty, but the federal government had paid for the tests to be conducted as part of its contract.
Maxwell has denied the allegations.
The lawsuit was filed in 1994 by Scott Peterson, a technician who worked on quality assurance for Sierra-Maxwell in Carson City. It was filed under provisions of the False Claims Act that allow a whistleblower to seek damages on behalf of the U.S. government and receive a portion of any settlement.
The Justice Department, which later joined the lawsuit, said in a statement Tuesday that Peterson will receive $48,000 from the settlement.
"The company has decided it is best to put this behind us by agreeing to this settlement with the government," said Mike Sund, vice president for communications for Maxwell Technologies.
"This arises out of a situation that occurred under prior management," he said.
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