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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

Miltope Corp. v. DRS Technologies (Trademark Infringement)

“On October 3, 2001, a lawsuit was filed by Miltope Corporation and IV Phoenix Group, Inc., against DRS Technologies, Inc., DRS Electronic Systems, Inc. and a number of individual defendants, several of whom had been employed by DRS Electronic Systems, Inc. The plaintiffs’ claims against DRS related generally to the activities of certain former employees of IV Phoenix Group and the hiring of some of those employees by the Company. [The plaintiffs’ original claims included infringement of a number of patents, breach of a confidentiality agreement, misappropriation of trade secrets, unjust enrichment, unfair competition, tortious interference with business relationships, tortious interference with contracts and conspiracy to breach fiduciary duty. An amended complaint filed in February 2002 eliminated the patent infringement claims and added claims related to statutory and common-law trademark infringement.] On May 4, 2005, DRS entered into a settlement agreement, pursuant to which the Company agreed to pay $7.5 million to the plaintiffs, and litigation involving the parties was resolved to their satisfaction, with the elimination of all outstanding claims. A charge of $6.5 million was recorded in the fourth quarter of fiscal 2005 to increase the Company’s accrual for the matter to $7.5 million as of March 31, 2005. The settlement payment was made on May 5, 2005.”

Misconduct Type
Intellectual Property
Enforcement Agency
Non-Governmental
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Settlement
5/4/2005
Contractors Involved Penalty
Total
DRS Technologies, Inc. $7,500,000
Further Information Released
DRS Press Release 8/15/2007
Form 10-Q (p. 20 of 57) 8/15/2007

Federal Contractor Misconduct Database