Boeing to Pay $25 Million to Settle Pentagon Billing Probe

Boeing (NYSE: BA) will pay $25 million to settle allegations that the company's drone unit overcharged the U.S. Navy for parts, the latest in a series of reputational hits for the aerospace giant.

Insitu, a Boeing subsidiary, will pay the fine to settle allegations that it violated the False Claims Act by knowingly submitting materially false cost and pricing data for Naval contracts, according to a Department of Justice statement. It said that the company was accused of charging new-part prices for "less expensive recycled, refurbished, reconditioned, and/or reconfigured parts to perform the contracts."

Insitu's ScanEagle drone on its launcher. Image source: Boeing.

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Source Fool.com