GE Aerospace: General Electric’s aerospace unit has reached a settlement, agreeing to pay $9.4 million to resolve allegations made by the federal government concerning the sale of inadequately inspected or non-compliant parts to the U.S. Army and Navy.
The U.S. Department of Justice revealed that the GE Aerospace plant in Lynn, Massachusetts, failed to conduct at least two inspections, inconsistently employed functional gauges for inspecting certain parts, and distributed engines that contained improper metal fragments. These lapses in inspection and the sale of non-conforming parts have the potential to compromise military hardware, national security, and even the safety of service personnel.
The settlement effectively puts to rest claims that GE Aerospace, headquartered in Evendale, Ohio, violated the federal False Claims Act. These alleged violations occurred between July 2014 and December 2019, serving as the government’s principal legal instrument for addressing cases of suspected fraud.
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In recognition of its cooperation and efforts toward remediation, Aerospace has been commended in the settlement. The company maintains that it initiated significant corrective actions over five years ago. Approximately $5.4 million of the settlement amount is allocated for restitution.
In response to these matters, GE Aerospace emphasised its unwavering commitment to safety and underscored that the identified issues had no impact on the safety of the affected aircraft. The company has implemented substantial measures to prevent any recurrence of such incidents.
GE announced its strategic restructuring plan, aiming to divide into three distinct companies with a focus on aviation, energy, and healthcare. The healthcare business was successfully spun off in January, and the energy division is slated for separation in the second quarter of the upcoming year. Following these changes, GE will transform into a pure-play aviation company under the name GE Aerospace.