Massachusetts firm settles False Claims Act case over untested Navy wire

Judd Wire Inc., of Turners Falls, Massachusetts, has agreed to pay $1,014,000 to resolve allegations that it violated the False Claims Act by failing to perform required testing on certain wire and cable products used by the U.S. Navy, the Justice Department announced.

According to the Justice Department, the settlement resolves allegations that from September 2011 to August 2021, Judd Wire produced wire and cable products used by the United States without completing all tests mandated under the 29 wire and cable specifications covered by the settlement. The government acknowledged that Judd Wire voluntarily disclosed the testing lapses, cooperated with the ensuing investigation and took remedial steps to correct the problem — actions that entitled the company to credit under the settlement terms.

“It is essential to the safety and operational capabilities of the military that suppliers comply with applicable product specifications,” Assistant Attorney General Brett A. Shumate of the Justice Department’s Civil Division said in a statement. Shumate added that suppliers failing to meet required specifications can mitigate the consequences by making timely self-disclosures, cooperating with investigators and moving quickly to fix the issues.

David W. Denton Jr., general counsel of the Department of the Navy, said safety testing of military equipment is central to protecting sailors and Marines, as well as the equipment on which their lives and missions depend. “When contractors fail to do so they need to be held accountable,” Denton said, according to the Justice Department. He said the Navy Acquisition Integrity Office will continue expanding its partnership with the Task Force to Eliminate Fraud on procurement fraud matters and take administrative action when appropriate.

The Justice Department said the matter reflects the government’s broader effort to combat fraud, waste and abuse in federal programs. This year, the administration launched the Task Force to Eliminate Fraud and the National Fraud Enforcement Division to strengthen those efforts. The department said its Civil Division’s False Claims Act enforcement work has recovered billions of dollars for taxpayers and will continue to support those initiatives.

The settlement was reached through a coordinated effort involving the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the Navy’s Office of General Counsel, Acquisition Integrity Office, according to the department. Trial Attorney Greg Pearson of the Civil Division’s Commercial Litigation Branch handled the matter.

The Justice Department noted that the claims resolved by the settlement are allegations only and that there has been no determination of liability.

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