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Crane Co.

Washington, DC: (Aug-15-07) The Justice Department brought a lawsuit against diversified manufacturer Crane Co., following a whistleblower's claims that the company did not complete required government inspections nor provided foreign-made products for use on Navy and Coast Guard ships. The Justice Department case alleged that the company did not comply with Defense Department regulations requiring suppliers complete a government inspection before becoming eligible to bid on federal contracts. Sources stated that the violations began in May 2003 when Crane deliberately disregarded the military requirements, according to the original suit filed by former employee Walter Klepacz in US District Court in Houston under the False Claims Act's whistleblower provisions.

In a settlement reached, the company agreed to pay $7.5 million to settle the whistleblower's claims. It also acknowledged the failure to notify the Navy and update the qualified products list but denies that this omission violated the False Claims Act. Stamford, CT-based Crane also allegedly did not comply with the Buy America Act and violated the Berry Amendment, which requires the Pentagon to give preference to domestically made products. Justice Department spokesman Charles Miller stated that Klepacz will receive more than $1.3 million as part of the settlement. [CNN NEWS: WHISTLEBLOWER]

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Published on Aug-17-07


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