Boeing to settle US claim over Osprey production issues

By Kanishka Singh and Valerie Insinna

WASHINGTON (Reuters) - Boeing has agreed to pay $8.1 million to resolve allegations it violated U.S. law by failing to comply with contractual obligations in its production of V-22 Osprey aircraft, the U.S. Justice Department said Thursday.

The settlement related to allegations Boeing violated the False Claims Act from about 2007 through 2018 because of its failure to meet certain specifications for fabricating composite components for the tiltroter aircraft at its facility in Ridley Park, Pennsylvania, the Justice Department said.

The Osprey is a military aircraft that takes off like a helicopter and then rotates its propellers to fly like a plane.

The government contended Boeing failed to perform monthly testing on autoclaves used to cure composite parts required under the terms of its contract with the U.S. Navy and was not in compliance with additional requirements related to the testing, the department said in a statement.

The settlement agreement, which was signed by legal representation for Boeing and the Justice Department, noted that Boeing denied the allegations it was not meeting requirements.

A Boeing spokesperson said the company "entered a settlement agreement with the U.S. Department of Justice and the U.S. Navy to resolve certain False Claims Act allegations, without admission of liability."

(Reporting by Kanishka Singh and Valerie Insinna in Washington; Editing by Chris Reese, Matthew Lewis and Jamie Freed)