Lockheed Martin reached a $10.3 million False Claims Act settlement with the federal government over claims that its Marietta, Georgia aircraft manufacturing division inflated the overhead rates on contracts with the U.S. Air Force and U.S. Navy from 1996 to 2000. The settlement resolved the government’s allegations that Lockheed Martin mischarged costs in a deal with Alenia Aerospazio, an Italian aerospace company, to develop the C27J tactical transport aircraft. The government claimed Lockheed charged business development, proposal and other commercial costs to government accounts.