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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 »

Alliant Techsystems Inc.

U.S. ex rel. Dye v. ATK Launch Systems (Defective Battlefield Flares)

Date: 04/23/2012 (Date of Settlement Announcement)

Misconduct Type: Government Contract Fraud

Enforcement Agency: Defense – General

Contracting Party: Defense - General

Court Type: Civil

Amount: $36,967,160

Disposition: Settlement

Synopsis: A False Claims Act lawsuit alleged that ATK Launch Systems, Inc., a wholly owned subsidiary of Alliant Techsystems, manufactured dangerous and defective battlefield flares for which the U.S. Army and Air Force paid ATK more than $100 million. It was discovered that the flares could ignite if dropped from low heights. The lawsuit also alleged company officials knew of the defect but never notified the government and never tested the flares. Kendall Dye, a manager of ATK's flare program, filed the lawsuit in April 2006. In April 2012, ATK Launch Systems agreed to pay nearly $37 million to settle the lawsuit -- $21 million in cash and $16 million in remedial services to fix the 76,000 flares remaining in the government’s inventory.