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About POGO's Federal Contractor Misconduct Database (FCMD)
The government awards contracts to companies with histories of misconduct such as contract fraud and environmental, ethics, and labor violations. In the absence of a centralized federal database listing instances of misconduct, the Project On Government Oversight (POGO) is providing such data. We believe that it will lead to improved contracting decisions and public access to information about how the government spends hundreds of billions of taxpayer money each year on goods and services. Report an instance of misconduct »
Ranking: 2
Boeing Company
Boeing is the world's leading aerospace company and the largest manufacturer of commercial jetliners and military aircraft, with capabilities in rotorcraft, electronic and defense systems, missiles, satellites, launch vehicles and advanced information and communication systems. Their reach extends to customers in 145 countries around the world, and they are the number one U.S. exporter in terms of sales.
Federal Contract $: $21599.2m
Total Number of Instances: 46
Total Misconduct dollar amount: $1054.5m
- Annual Report
- Ethics Page
- Hoovers Profile
- Lobbying Information
- Political Activity
- Press Page
- SEC 10K
- Subsidiary List
- Contracting Information
- Website
Instances of Misconduct
1. Arms Export Control Act Violation (Transfer of Rocket Data to China)
Hughes Electronics Corp. and Boeing resolved civil charges of violating the Arms Export Control Act, agreeing to a $32 million settlement. The charges involved the transfer of rocket data to China in 1995 and 1996 by Hughes Space & Communications, which Hughes Electronics sold to Boeing in October 2000. Of the $32 million fine, $12 million was suspended "on the condition that over a five-year period, Boeing will apply $6 million and Hughes will apply $2 million to offset the costs associated with remedial compliance measures required in the consent agreement." The remaining $4 million of the suspended amount was credited back to Boeing and Hughes for compliance-strengthening measures they had already undertaken. POGO is unable to determine Boeing's share of the unsuspended $20 million civil penalty.... more»
2. Beck v. Boeing (Gender Discrimination Class Action)
Boeing agreed to pay between $40.6 million and $72.5 million and change its practices to settle a gender discrimination case. About 29,000 current and former female workers accused Boeing of discrimination. Boeing allegedly denied an estimated 4,800 women employees at its Wichita, Kansas plant equal pay, promotions and opportunities for overtime work based solely on gender, in violation of Equal Protection laws under the Fifth and Fourteenth Amendments to the U.S. Constitution.... more»
3. Boeing Launch Services Suspension
Boeing Launch Services and Delta Program business units were suspended from receiving new federal contracts from July 24, 2003 to March 4, 2005. The suspensions were based on a pending criminal investigation into Boeing’s unlawful possession and use of a competitor’s proprietary documents in connection with the competition for a U.S. Air Force Evolved Expendable Launch Vehicle (EELV) contract, and the indictment of two former Boeing employees. A majority of the contracts assigned to Boeing were transferred to Lockheed on the basis of the suspension. The Federal Acquisition Regulation (FAR) 9.407 provides a basis for the suspension of the Boeing units. In June 2006, Boeing entered into a global settlement with the U.S. Department of Justice for $615 million to resolve this and other pending investigations. See Boeing Company misconduct instance "Illegal Hiring of Government Officials and Improper Use of Proprietary Information."... more»
4. Uncertified Welders (False Claims Act)
Boeing paid $492,164 ($474,164 in price adjustments and $18,000 to the Department of Justice Working Capital Fund) to settle an alleged violation of the False Claims Act, 31 U.S.C. § 3729-3733, in which the company allegedly used uncertified welders for the construction of military aircraft parts at Boeing’s Ridley Park, Pennsylvania facility.... more»
5. Defective Pricing
According to a GAO report cited by Senator Harkin and Representative DeFazio, McDonnell Douglas, a Boeing subsidiary, reached a settlement for $1,850,000 for alleged defective pricing.... more»
6. Discriminatory Pay Disparities
Boeing paid a minimum of $4.5 million in back pay and salary adjustments to female and minority employees. This resolved claims of pay disparities raised by the Department of Labor’s Office of Federal Contract Compliance Programs, in violation of Executive Order 11246, which forbids discrimination based on race or gender in federal contracting.... more»
7. EEOC v. Boeing (Americans with Disabilities Act Discrimination)
Boeing settled a lawsuit with the Equal Employment Opportunity Commission for $89,000. The EEOC alleged employees and applicants were excluded by Boeing because they were perceived as being disabled or had a record of a disabling condition, in violation of the Americans with Disabilities Act.... more»
8. 777 Aircraft Program (Unallowed Costs)
Boeing agreed to an administrative settlement of over $6 million for including costs from the 777 commercial airline program in governmental general and administrative accounts. "Contractors are not permitted to include costs of commercial contracts either directly or indirectly in accounts for which the Government is charged.”... more»
9. Improper NASA Invoices
Boeing and United Space Alliance (a limited liability company jointly owned by Boeing and Lockheed Martin) agreed to pay a total of $825,000 and to give up their rights to $1.2 million in unpaid invoices to settle allegations of False Claims Acts violations, 31 U.S.C. §§ 3729-3733, submitted to the government between 1986 and 1992 under NASA’s Space Shuttle and Space Station Freedom programs. “In 1993, the United States sued Omniplan and secured a consent judgment, but the company went bankrupt before it was able to pay the full judgment. On January 11, 2000, the government filed a civil suit alleging that [Rockwell Space Operations Company (RSOC), later purchased by Boeing] violated the False Claims Act by knowingly submitting to NASA the improper Omniplan invoices. The complaint alleged that RSOC knew or should have known that the subcontractor's invoices contained false claims.” See United Space Alliance misconduct instance "False Claims on Invoices."... more»
10. Defense Services to Russia and Elsewhere (Arms Export Control Act Violation)
It was alleged that Boeing violated the Arms Export Control Act, Pub. L. 90-629, and the International Traffic in Arms Regulations by exporting technical data and defense services to Russia, the Ukraine, Norway and Germany "without the required approvals from the Department [of State] and, in other circumstances, violated the terms and conditions of approvals that were provided by the Department." Boeing was ordered to pay a civil penalty of $7.5 million and a suspended penalty of $2.5 million to be applied to the costs of compliance measures over a three year period.... more»
11. Wedgetail Project (Arms Export Control Act Violation)
“The Boeing Company was alleged to have violated the Arms Export Control Act, Pub. L. 90-629, and the International Traffic in Arms Regulations in connection with its involvement in the Wedgetail project… by violating the express terms and conditions of Department of State munitions license and other authorizations, by exporting defense articles and defense services without a munitions license or other authorization, and by omitting material facts from its applications for munitions licenses or other authorizations.” Boeing was ordered to pay a $3.8 million civil penalty and a suspended penalty of $400,000 to be applied toward the cost of compliance and monitoring measures over a three year period.... more»
12. Machine Tools Export Violation (China)
“The Department of Commerce... imposed a $2.12 million civil penalty against McDonnell Douglas [a subsidiary of Boeing]... as part of a settlement of charges that the company violated federal export control laws. The penalty is the maximum fine possible for the alleged violations.” McDonnell Douglas was alleged to have exported machine tools to China between 1994 and 1995 by submitting license applications containing false and misleading statements. “The Boeing Company assumes responsibility and liability for all exports under the Commerce Department's jurisdiction made or to be made by McDonnell Douglas.”... more»
13. O'Connor v. Boeing
Laurence O'Connor alleged radioactive and chemical wastes were being discharged into the environment due to Boeing’s negligence. The case settled as the trial was about to start in September 2005. Both sides agreed to keep the settlement terms confidential.... more»
14. Oberman v. McDonnell Douglas (C-17 overcharge)
McDonnell Douglas Corp., a wholly owned subsidiary of The Boeing Company, paid the United States $2 million to settle allegations it overcharged the government to repair equipment the company used to manufacture C-17 aircraft, which is an Air Force cargo plane, in violation of the False Claims Act, 31 U.S.C. §§ 3729-3733.... more»
15. Roby v. Boeing (Defective Chinook Helicopters)
Boeing agreed to pay the United States up to $54 million to settle two lawsuits that allege the Seattle-based manufacturer placed defective gears in CH-47D Chinook helicopters and then sold the aircraft to the United States Army, a violation of the False Claims Act, 31 U.S.C. §§ 3729-3733 .... more»
16. Delivering Military Aircraft Containing Russian Titanium (Berry Amendment Violation)
Boeing and the U.S. government reached a settlement over claims Boeing delivered military aircraft containing parts made of Russian-melted titanium rather than U.S. product, in violation of the Berry Amendment, 10 U.S.C. § 2533(a), which provides that a contractor may not purchase foreign titanium with appropriated funds. In addition, Boeing agreed to deliver without charge aircraft parts worth more than $1.4 million. The case was settled with the Department of Justice under the False Claims Act, 31 U.S.C. § 3729-3733.... more»
17. United States of America v. Darleen A. Druyun
The Air Force’s former chief acquisition official, Darleen Druyun, was sentenced to nine months in federal prison for her part in a conspiracy to assist Boeing in a tanker lease contract while negotiating a job with them, in violation of 18 U.S.C. § 208, which deals with personal financial conflicts of interest. She was also fined $5,000 and ordered to perform 150 hours of community service. She pleaded guilty to her changes and took full responsibility for her actions. In June 2006, Boeing entered into a global settlement with the U.S. Department of Justice for $615 million to resolve this and other pending investigations. See Boeing Company misconduct instances "Illegal Hiring of Government Officials and Improper Use of Proprietary Information" and "United States v. Michael M. Sears (Boeing CFO)."... more»
18. United States v. Michael M. Sears (Boeing CFO)
Former Boeing CFO Michael Sears was sentenced to four months in prison, a $250,000 fine and 200 hours of community service for his part in the illegal hiring of top Air Force acquisition official Darleen Druyun. Mr. Sears was convicted for aiding and abetting Darleen Druyun in negotiating employment with Boeing while she was negotiating for a $20 billion lease of 100 Boeing KC-767A tanker aircraft, violating 18 U.S.C. § 208, which concerns acts affecting personal financial interest. Sears pleaded guilty to the charges and took full responsibility for his actions. In June 2006, Boeing entered into a global settlement with the U.S. Department of Justice for $615 million to resolve this and other pending investigations. See Boeing Company misconduct instances "Illegal Hiring of Government Officials and Improper Use of Proprietary Information" and "United States of America v. Darleen A. Druyun."... more»
19. Werbowsky, et al. v. Boeing et al. (Securities Class Action)
The original suit was filed in October 1997 following Boeing’s announcement that it was implementing production recovery plans that involved temporarily shutting down the 747 and 737 Next Generation assembly lines, and that charges associated with these recovery plans and late delivery costs totaled approximately $1.6 billion pre-tax for the third quarter of 1997. “The plaintiffs contended that Boeing withheld knowledge of the facts leading to these announcements. Boeing’s stock price declined following the announcement of the third quarter charge. In their complaint, plaintiffs alleged that the defendants had violated the federal and state securities laws and the Washington Consumer Protection Act.”... more»
20. Santa Monica Water Contamination Settlement
Boeing agreed to pay the City of Santa Monica, California $39.5 million over the course of 10 years to settle claims that Douglas Aircraft (which merged with Boeing in 1997) contaminated the local water supply with chemical solvents when it operated manufacturing facilities in the area from the 1940s to the 1970s.... more»
21. ICO Global Telecommunications v. Boeing (Breach of Contract)
ICO Global Telecommunications sued Boeing Company and Boeing Satellite Systems International (BSSI) alleging breach of contract and fraud involving a failed plan to launch a network of satellites that would transmit mobile services. ICO contracted with Hughes Electronics Corp. (acquired by Boeing in 2000) to build and launch the satellite system. Only two of the satellites were ever finished. One was destroyed during launch, and the other, which made it into orbit, is of little use without the 10 others which remain unfinished. ICO contended Boeing made matters worse after it bought Hughes by demanding an additional $400 million to finish the job and getting into the satellite based communications business itself, thus becoming a direct competitor of ICO. Boeing originally sued ICO in 2004 after ICO terminated the contract. In October 2008, the jury found BSSI and Boeing liable for breach of contract, fraud and tortious interference with a contract. The court awarded $603 million in damages to ICO, which was overturned on appeal. In June 2012, Boeing and ICO (which changed its name to Pendrell Corporation in 2010) settled the lawsuit with Boeing agreeing to pay $10 million.... more»
22. Moses Lake Wellfield Superfund Site Cleanup
The federal government and the state of Washington reached a $58 million agreement with Boeing, Lockheed Martin, and the City of Moses Lake, Washington to clean up trichloroethylene (TCE) contamination from groundwater at the Moses Lake Wellfield Superfund site. Under a consent decree, Boeing, Lockheed Martin and Moses Lake will provide a total of $3.25 million to resolve their liability under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) – Boeing will pay $2 million and Lockheed Martin will pay $500,000. The site rests on 15 square miles in Grant County, Washington. Between 1942 and 1966 a substantial portion of the site was used as the former Larson Air Force Base. Boeing and Lockheed conducted operations there, including flight testing, delivery of B-52 aircraft and missile assembly. The operations conducted by Boeing and Lockheed included the use and disposal of TCE. The City of Moses Lake owns and operates a water and sewage treatment plant within the site which may also have been a source of TCE pollution.... more»
23. Duwamish Waterway Jet Fuel Spill
The Washington State Department of Ecology fined the Boeing $102,000 for spilling 300 gallons of jet fuel into the Duwamish Waterway in May 2010. According to the department, the spill happened at a Boeing fuel terminal in south Seattle while workers were delivering fuel to an aboveground storage tank. During the delivery, a maintenance valve that should have been closed was open, and an automatic pump that empties the vault was left on. The state also billed Boeing $5,543 for cleanup and investigation costs. According to the department, “Boeing cooperated fully with our investigation. Unfortunately, there was negligence in failing to check the required settings before the fuel transfer, in the oversights during the first check of the storm drain line, and in not immediately reporting the spill.”... more»
24. Contract Pricing Problems at Corpus Christi Army Depot
A May 2011 Department of Defense Inspector General audit of the Army Aviation and Missile Life Cycle Management Command’s (AMCOM) contract with Boeing to support the Corpus Christi Army Depot (CCAD) found that Boeing submitted cost and pricing data that was not current, complete, and accurate. The report calculated that Boeing charged the Army about $13 million (131.5 percent) more than fair and reasonable prices for 18 spare helicopter parts. The audit also found that Boeing owed the Army an additional refund of $538,688 because it did not meet requirements in a subsequent contract phase. Boeing issued the Army a credit for $324,616 for one of the defectively priced parts and provided additional refunds of about $1.3 million.... more»
25. Improperly Installed Oxygen Systems on B-777 Airliners
The Federal Aviation Administration (FAA) proposed a $1,050,000 civil penalty for allegedly failing to correct a known problem in production and installation of the central passenger oxygen system in its B-777 airliners. The FAA based the penalty on inspections of nine newly assembled aircraft between April and October 2010. Inspectors discovered that spacers in the oxygen delivery system distribution tubing on the aircraft were not installed correctly, which could have resulted in the system not supplying oxygen to passengers if depressurization occured.... more»
26. Quintana v. Boeing (KC-135 Labor Overbilling)
Boeing reportedly agreed to pay the United States $2 million to settle False Claims Act allegations that the company overbilled the government for work done on Air Force KC-135 tankers at the Boeing Logistics Support System in San Antonio, Texas. Former Boeing employee Edward Quintana claimed that, from 2002 to 2005, Boeing manipulated records to show others besides him had been performing maintenance and repair work on the tankers when they had not.... more»
27. Violations of Anti-Trust Laws
“The Boeing Company will settle Federal Trade Commission charges that its $3.025 billion acquisition of Rockwell International Corporation's Aerospace and Defense business would violate antitrust laws. The FTC charged that the proposed deal would violate antitrust laws by reducing competition in two markets: high altitude endurance unmanned air vehicles and space launch vehicles, including the Department of Defense’s Evolved Expendable Launch Vehicle Program…The agreement to settle the charges would forbid Boeing from making any space launch vehicle manufacturer’s non-public information available to its launch vehicle division and would allow Boeing to use a competitor's proprietary, non-public information only in its capacity as a provider of launch vehicle propulsion systems.”... more»
28. Radioactive and Toxic Contamination
In January 2006, a CBS News affiliate reported that Boeing agreed to pay $30 million to settle claims that the nearly 100 neighbors of the Santa Susana Field nuclear research facility were sickened by decades of radioactive and toxic contamination. The settlement, which ended an eight-year legal battle, was supposed to remain confidential, but one of the plaintiffs divulged the terms to the local media. POGO was unable to independently confirm the settlement amount.... more»
29. Illegal Hiring of Government Officials and Improper Use of Proprietary Information
On May 15, 2006, Boeing and the U.S. Attorney’s Office “reached a tentative agreement in the investigation by the United States Attorney’s Office for the Eastern District of Virginia concerning Boeing's hiring of former Air Force acquisition official Darleen Druyun in 2002 and the investigation by the United States Attorney’s Office for the Central District of California regarding possession of a competitor's information in connection with launch service contracts with the Air Force under the Evolved Expendable Launch Vehicle Program and with a task order with NASA for 19 missions under its launch services contract…Under the proposed agreement, Boeing will pay a total of $615 million. In addition to the $50 million monetary penalty [pursuant to a criminal deferred prosecution agreement], Boeing will pay $565 million to resolve potential civil claims asserted by the Department’s Civil Division.” Under the agreement, the U.S. Attorney's Office could levy another $10 million penalty and seek to prosecute Boeing over the Druyun matter if, in the two years following the agreement, an executive management employee of Boeing commits certain crimes and the company fails to report it to the Department of Justice. See Boeing Company misconduct instances "Boeing Launch Services Suspension," "United States of America v. Darleen A. Druyun," and "United States v. Michael M. Sears (Boeing CFO)."... more»
30. Inflating the Price of B-1 Bomber Towed Decoy System
The federal government filed a False Claims Act lawsuit against Boeing, claiming the company unlawfully inflated the price it charged the Air Force for a missile-decoy system for the B-1 bomber. The government claimed that during contract negotiations in 1998, Boeing failed to disclose that it was outsourcing the fabrication of parts used in the system, which led the Air Force to overpay Boeing by $7.5 million on 140 submitted invoices. In October 2010, Boeing agreed to pay $4 million to settle the lawsuit. Boeing settled without admitting wrongdoing.... more»
31. Burchfiel v. Boeing (Disability Discrimination)
Thomas Burchfiel was working in Boeing's manufacturing plant in Spokane, Wash. when it was sold to another company in 2002. At that time, he was told that his job was being eliminated but would be given a chance to reapply. When he was not rehired, he sued Boeing, claiming discrimination based on his medical condition and retaliation. A jury agreed with his claims and awarded him $1 million. The trial judge subsequently vacated the verdict, but the verdict was reinstated on appeal.... more»
32. Defective Work and Overbilling on KC-10
Boeing agreed to pay the United States $25 million to resolve False Claims Act allegations that the company performed defective work on Air Force KC-10 Extender refueling aircraft. A lawsuit filed by former Boeing employees Anthony Rico and Fernando de la Garza alleged that Boeing defectively installed insulation blanket kits in KC-10 aircraft while performing depot maintenance at the Boeing Aerospace Support Center in San Antonio, Texas. It was also alleged that Boeing overcharged the government for installation of the blanket kits. The settlement consists of a $18,400,000 cash payment and $6,600,000 worth of repair work to be done on the defective blankets.... more»
33. Castron et al. v. Boeing (Gender Discrimination and Retaliation)
Former Boeing employees Antonia Castron and Renee Wrede accused Boeing of gender discrimination in dismissing them from their jobs at its Mesa, Arizona plant after they got low scores on reduction-in-force (RIF) assessments, which Boeing uses when determining which employees to lay off. The federal district court granted Boeing's motion for summary judgment and threw out the case, but in August 2009, the U.S. Court of Appeals for the Ninth Circuit reversed and remanded for trial. In January 2010, Boeing, which did not admit that it violated any federal, state, or local law or had any civil liability, agreed to pay $140,000 each to Castron and Wrede.... more»
34. Santa Susana Field Laboratory Pollution
Boeing and the State of California settled alleged pollution violations in water running off the Santa Susana Field Laboratory, its rocket engine and nuclear test site located south of Simi Valley. The California Attorney General’s Office sued Boeing on behalf of the Los Angeles Regional Water Quality Control Board, alleging that Boeing had racked up at least 40 runoff violations from December 2006 to December 2009 when contaminants including chloride, radioactive material, iron, mercury, manganese, dioxins and zinc were found in elevated levels in the stormwater runoff. Boeing will pay a $200,000 civil penalty, as well as $300,000 to fund a supplemental environmental project and $75,500 for attorneys’ fees and investigation costs.... more»
35. Natural Resource Damages Along the Duwamish Waterway
Boeing agreed to undertake two habitat restoration projects in Washington State to settle its liability for damages caused by the release of hazardous substances from Boeing facilities along the Duwamish Waterway. The natural resource trustees – the National Oceanic and Atmospheric Administration (NOAA), the Department of the Interior, the U.S. Fish and Wildlife Service, the Washington State Department of Ecology, the Washington State Department of Fish and Wildlife, the Suquamish Tribe and the Muckleshoot Indian Tribe – filed a federal lawsuit alleging natural resource damages under the Superfund statute, the Clean Water Act, the Oil Pollution Act, and Washington’s Model Toxics Control Act. Pursuant to the settlement, Boeing will create habitat for several fish and bird species, will repay almost $2 million of the natural resource trustees’ costs, and will pay $360,000 to establish a permanent stewardship fund for the projects.... more»
36. KC-135 and RC-135 Aircraft Parts Overbilling
Boeing agreed to pay $1,093,236 (a refund of the charges at issue plus interest) to settle allegations that it overbilled for materials used in installing new military aircraft engines. The settlement stems from an investigation into payment requests that Boeing made from 1998 to 2003, when Boeing allegedly double-billed for nuts, bolts, rivets and fasteners used in modernizing KC-135 Stratotankers and RC-135 reconnaissance aircraft.... more»
37. Aircraft Toxin Exposure
Terry Williams, a former American Airlines flight attendant, sued Boeing and its McDonnell Douglas subsidiary claiming she was exposed to hazardous fumes from the air delivery system used on Boeing commercial aircraft. (McDonnell Douglas, which built the aircraft in question, merged with Boeing in 1997.) Williams claimed she was injured by a sudden, acute exposure to a hazardous additive to lubricant used in the engines. In October 2011, the parties reached a confidential settlement.... more»
38. Defective Apache Helicopter Fuzz Busters
Eugene Swensen, a former engineer at McDonnell Douglas (now Boeing), filed a False Claims Act lawsuit in 1998 alleging the company was not properly installing a safety device known as a “fuzz buster” in Apache Attack Helicopters. According to Swensen, the device was not receiving sufficient electrical power, causing false engine failure warnings and numerous unnecessary landings, aborted missions, and unnecessary maintenance. In 2003, Boeing agreed to pay the United States $2.5 million to settle the lawsuit. Boeing also paid Swensen $825,000 to settle his retaliation claim and his legal fees and costs.... more»
39. Improper Billing on the Chinook Helicopter Program
The Boeing Company agreed to pay the United States nearly $4.4 million to resolve False Claims Act allegations that Boeing improperly billed the Department of Defense for work on the Chinook helicopter program. The government alleged that several Boeing managers at its Ridley Park, Pennsylvania facility instructed the mechanics assigned to the Chinook program to perform other, non-billable work while separately billing for their time, resulting in the government being charged for work for which it had already paid. Boeing also agreed to “remanufacture” several hundred older Chinook helicopters by overhauling their airframes to accommodate upgrades of the helicopter’s avionics and engines.... more»
40. Arms Export Control Act Violation (QRS-11 Gyrochip)
Boeing paid a $15 million fine for a violation of the Arms Export Control Act involving unlicensed foreign sales of commercial airplanes containing the QRS-11 gyrochip (gyroscopic microchip), a component that has military applications. The State Department also imposed additional oversight and compliance requirements on Boeing because of three previous export violations (see Boeing instances “Arms Export Control Act Violation (Transfer of Rocket Data to China),” “Defense Services to Russia and Elsewhere (Arms Export Control Act Violation),” and “Wedgetail Project (Arms Export Control Act Violation)”). According to the State Department, between 2000 and 2003 Boeing sold to China and other countries 94 commercial jets with the gyrochip embedded in the flight boxes without obtaining an export license and in “blatant disregard” of State Department directives.... more»
41. Aircraft Quality Control Problems
The Federal Aviation Administration proposed civil penalties against Boeing Commercial Airplane Group for not reporting quality control problems with its aircraft in 1997 and 1998. The fine covers two incidents, Boeing’s failure to immediately report cracks on aircraft parts and failing to ensure its subcontractors adhered to Boeing’s quality control policies and procedures.... more»
42. Rocky Flats Radioactive Waste Pollution
A Denver federal court ordered Boeing and Dow Chemical Company to pay 12,000 homeowners $926 million for contaminating their property with radioactive waste from the Department of Energy’s Rocky Flats Nuclear Weapons Plant. The court fined Dow $653.3 million and Boeing $508.1 million in compensatory damages, but set a cap of $725.9 million dollars for both companies. The court also fined Dow $110.8 million and Boeing $89.4 million in punitive damages. The fines were imposed pursuant to a February 2006 jury verdict that found the companies responsible for plutonium waste that leaked from the plant, located 15 miles northwest of Denver. The homeowners originally filed suit in 1990 against Dow and defense contractor Rockwell International Corp., which Boeing acquired in 1996. The final judgment notes that Boeing “is successor-in-interest to Rockwell International Corporation and has represented to the Court that it is answerable for any judgment rendered against Rockwell International Corporation in this matter.” Dow operated the Rocky Flats plant from 1953 to 1975, and Rockwell from 1975 until it closed in 1994.... more»
43. USA v. Lesnik (Unauthorized Possession of Defense Information)
Abraham Lesnik, a former Boeing engineer who specialized in anti-missile systems, pleaded guilty in July 2008 to taking classified documents home. Until 2007, Lesnik worked at Boeing's El Segundo facility where he worked on a partially classified project under contract with the Department of Defense. He pleaded guilty to a federal felony charge of unauthorized possession of defense information. Prosecutors alleged he repeatedly downloaded sensitive information onto a thumb drive which he then took home. His sentencing is scheduled for October 2008. As part of his plea agreement, prosecutors agreed not to seek a prison term of more than five years.... more»
44. Exceeding Limits on Purchases From Foreign Suppliers
Boeing agreed to pay a $3-million fine for violating the Arms Export Control Act and the International Traffic in Arms Regulations by exceeding the value limits on the purchase of imported parts used to build military aircraft. Boeing imported more than what was allowed under manufacturing license agreements covering the C-17 transport plane, the Apache attack and Chinook transport helicopters and F/A-18 fighter plane. The suppliers were in Australia, the United Kingdom, Canada, Israel, Italy, Japan, the Netherlands, Switzerland and Austria. Boeing discovered the violations and reported them to the State Department.... more»
45. Water Pollution (Simi Valley, CA)
The Los Angeles Regional Water Quality Control Board fined Boeing for 79 water pollution violations occurring between October 2004 and January 2006 at Boeing’s Santa Susana Field Laboratory in Simi Valley, California. According to the Board, the violations involved wastewater and storm water runoff discharges containing elevated levels of chromium, dioxin, lead, mercury and other pollutants that entered Bell Creek, which is a tributary to the Los Angeles River, and the Arroyo Simi.... more»
46. EEOC v. The Boeing Company (Sexual Harassment and Retaliation)
The U.S. Equal Employment Opportunity Commission (EEOC) filed a sexual harassment and retaliation lawsuit against Boeing in 2003 on behalf of Kelley Miles, a female mechanic at Boeing's Apache helicopter plant in Mesa, Ariz. The suit alleged that Miles had been the subject of repeated sexual harassment by male co-workers from 1998 to 2001 and that Boeing did not adequately respond to her complaints. In February 2010, Boeing, which did not admit that it violated any federal, state, or local law or had any civil liability, agreed to pay Miles $100,000.... more»
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